This study investigates the utilization of excess yarn cones in knitted fabric production as a cost-effective and sustainable alternative to conventional yarn usage. Two types of fabrics were produced using a circular knitting machine: conventional fabric made with 20s cotton yarn and experimental fabric produced using mixed yarn counts (20s and 30s) collected from excess yarn cones. Both fabrics were knitted under similar machine conditions such as same gauge, diameter, and loop length. The produced fabrics were tested for various structural and physical properties including GSM, CPI, WPI, loop length, tightness factor, bursting strength, air permeability, shrinkage, thickness, and color fastness after dyeing. The results show that the experimental fabric produced using mixed yarn counts exhibited properties comparable to the conventional fabric with only minor variations. In addition, the cost analysis revealed that the use of excess yarn cones significantly reduces production cost by eliminating rewinding processes and utilizing low-cost yarn materials. The study demonstrates that excess yarn cones can be effectively utilized in knitted fabric production to reduce yarn waste and promote sustainable textile manufacturing.