An improved wet processing method for producing improved terry fabrics is provided. Woven fabric is treated based on enzymatic treatment process including de-sizing using optimized dosage of predetermined de-sizing ingredients, washed and bio-washed using optimized dosage of bio-washing ingredients. Enzyme treated fabric is pre-treated and subjected to hot air beat-up process comprising mechanically treating pre-treated fabric with optimized hot air beat-up parameters. Air is blown onto pre-treated fabric from both directions for predetermined duration and at predetermined frequency causing to and fro movement of fabric in tumbling chambers of tumbling machine resulting in an instantaneous impact produced on every pile loop of pre-treated fabric such that fibers rearrange in a path of least resistance to produce relaxed, open and aligned fiber structure in the fabric. Mechanically treated hot air-beaten up fabric is dyed and includes finishing the dyed fabric with softener and subjected to tumbling using optimized finishing parameters.