This paper analyzes two process features and three application effects of false-twist spinning technology. When introducing the process parameters of false twisting, the ratio of falsetwist/twist factor of resultant yarn is used. It sums up 6 advantages of this technology in termof application effect, interprets the prospects of false-twisting technology according to the development program of the cotton textile industry, make a comparison between compacting spinning technology and false-twisting technology in terms of process feature and price/performance ratio, states the advantages of false-twisting technology in lowering investment and operation costs and improving spinning condition and draws the conclusion that there is a significant difference between these two spinning technologies in term of investment and operation costs.