Physical properties of the composite yarn using low-melting(LM) polyester/Tencel were investigated with air-jet texturing conditions such as temperature, take-up overfeed, yarn speed and air pressure. Surface morphology, microstructure, tensile property, glossiness were evaluated. Surface morphology of a composite yarn had more damaged and loosened structure according to increase of take-up overfeed, yarn speed and air pressure. Crystallinity was affected by parameters such as temperature, yarn speed, take-up overfeed and air pressure and especially, yarn speed was most effective for increase of crystallinity. Also, it was found that temperature and air pressure had significantly affected tensile properties of a composite yarn. The glossiness of yarn increased with increase of temperature, yarn speed and air pressure.