To produce a paper yarn capable of imparting a touch similar to that of a paper yarn made from conventional Broussonetia kazinoki Sieb. and Edgeworthia chrysantha Lindl. as a raw material at a low cost without using either of both.

This method for producing a paper yarn comprises the first step for heat-treating a fiber bundle contained in a sheath of a banana and/or a leaf of a pineapple as a raw material in an aqueous solution containing an alkaline substance and hydrogen peroxide or a hydrogen peroxide producer and pulping the fiber bundle, the second step for forming the pulp obtained in the first step into a sheet of paper so as to properly arrange fibers in the single direction and affording a thin sheet of paper having a high tensile strength in the direction, the third step for cutting the thin sheet of paper prepared in the second step in the direction parallel to that of the high tensile strength and the fourth step for twisting the cut thin sheet of paper into the paper yarn.