A method for combining a relatively elastic yarn component with a relatively inelastic yarn component is disclosed, and wherein the two components are guided through a jet of high velocity air so as to entangle the filaments and produce a bulked composite yarn. To facilitate the air jet entangling operation, at least the inelastic yarn component is subjected to a filament spreading operation prior to its advance through the air jet. The method may also be incorporated in a false twisting process, and wherein the inelastic component is false twisted so as to transversely spread its filaments prior to its being brought into contact with the elastic component and subjected to the air jet.