To provide a composite processed yarn having soft touch, gloss feeling, tension, stiffness, stretchability, etc., having spun silk-like stretchability, and suitably used as a raw material for women's wears or as a raw material for coats, and to provide a method for producing the same.

This composite processed yarn comprises a core yarn comprising drawn multifilaments and a sheath yarns comprising imperfectly drawn multifilaments alternately wound on the core yarn in the S direction and in the Z direction, has interlaced portions, has a stretch recovery rate of 3-20% and left torque twists of ≤20 twists/m, and is not deformed both in the longitudinal direction of the yarn and in the direction vertical to the longitudinal direction. This method for producing the composite processed yarn comprises paralleling an undrawn or imperfectly drawn multifilament yarn and a drawn multlfilament yarn, applying an interlacing treatment to the paralleled yarns, and subsequently applying twisting, untwisting, false-twisting and drawing treatments to the interlaced yarn at a temperature not exceeding the glass transition temperature of the multifilaments.