The invention provides a modal and polyester core-spun stretch yarn interwoven jacquard fabric and a processing process thereof. The fabric is characterized in that a modal raw material is adopted for warp yarns, of which the number is 9.8tex and yarn indexes comprises: yarn levelness of CV13.2 percent, snicks of 3 per km, nubs of 20 per km, cotton neps of 81 per km, a hairiness value H of 3.6, breaking strength of CV13.2 percent and breaking strength of 17.8cn/tex; mechanical SCY type polyester filament stretch yarns are adopted as weft yarns, of which specific specifications are T75D+40D, DTY, 36F and semi-matt; the warp density of the fabric is 687 per 10cm, the weft density is 474 per 10cm, the breadth is 165cm, a 12-heald jacquard check structural design is adopted, and in addition, in order to ensure the quality and structure of fabric edges, two healds are added to form an edge structure. Special process conditions are adopted in processes of warping, slashing, weaving, printing and dyeing and the like of the processing process of the fabric. The fabric and the processing process thereof have the beneficial effects that: the structure of the fabric is well designed, so that the fabric has feels delicate and soft, is high in drapability, resilience and anti-wrinkling performance, has a silk-like effect, and is a spring and autumn fashion fabric, and in addition, jacquards of the fabric are exquisite and groovy.