ABSTRACT This research collected and analyzed all relevant patents and literatures in various types of the fabric folding mechanism in circular knitting machine. All collected literatures were classified into two categories according to the way of storing fabric for important references in this research. After completion of classification analysis, we should establish the mechanism design conditions and use slider-crank mechanism and the idea of buffer as foundation to design mechanical fabric folding mechanism. Computer-aided design software was used to build three-dimensional models and detailed design that demonstrate the materialize conception. Then, using stress analysis to verify its strength. Finally, testing the actual prototype to verify the design whether will achieve the required functionality.