Influences of processing parameters on tensile property, stability and bulk of core-and-effect air textured yarns of diacetate polyester filaments are mainly examined in this paper. When the air pressure is raised, the tenacity and breaking elongation of textured yarns are reduced, Instability I and II tend to decrease at first and then increase, the core bulk declines markedly at first and then changes slowly, whereas the overall bulk changes little at first and then goes up greatly. With increase in texturing speed, the yarn tenacity and breaking elongation both drop initially then begin to increase, the core bulk and overall bulk are almost linearly increased, while the yarn instability changes with an unclear trend. When the winding underfeed ratio is increased, the yarn tenacity, breaking elongation and core bulk are reduced, but the yarn stability is slightly improved. The wetting of the core component produces higher tenacity, breaking elongation, instability and bulk, compared with that of the effect component or that of both, but the difference is insignificant.