The present invention generally relates to the production of knitted sweatbands that exhibit superior elasticity and breathability. Generally, the manufacturing process for producing the knitted sweatbands involves: (1) applying a continuous wax coating onto a polyester yarn; (2) twisting the yarn with one or more additional yarns to produce a twisted yarn; (3) knitting the twisted yarn into a sweatband body; and (4) finishing the sweatband body to form the sweatband. The sweatbands of the present invention can easily facilitate the movement of sweat away from the wearer, while still providing comfort and breathability.