PURPOSE: To produce stretchable embroidered cloth by using a latently stretchable conjugated yarn which is prepared by coiling a covering yarn around after a stretchable elastic yarn and a water-soluble unstretchable yarn are paralleled, embroidering a base cloth with the conjugated yarn and dissolving off the water- soluble unstretchable fiber.

CONSTITUTION: A stretchable elastic yarn 2 which is properly stretched in a needed degree and a water-soluble unstretchable yarn 3 such as water-soluble Vinylon are paralleled and a covering yarn 5 comprising synthetic fiber yarn or natural fiber yarn is coiled around the core yarn, further the covering yarn 5 is winded in coil in the reversed direction to form a latently stretchable conjugated yarn 1. The yarn l is used as a front or back yarn or as both yarns to effect embroidering on a base cloth made of water-soluble yarns or stretchable yarns, then the water-soluble unstretchable yarn 3 is dissolved off, and heat treatment is effected at a certain level of setting whereby the objective stretchable embroidery is obtained.