The mechanism and process for cationic modification of Modal fibers were reviewed in the paper. Differential modified Modal yarn and its fabric was briefly introduced, and the exhaust dyeing process of the fabric was discussed according to production practice. The results showed that the Jet-overflow dyeing technology could be successfully used for the modified fabric, which can create special effect like colored spun yarn by using a single dyebath. Overcoming the limitation of slow reaction to the market and much intermediate product, the modified fabric is suitable for the market development trend of multi-type and small batch, which can improve the high additional value and high benefit of Modal yarn.