A hydroentangled nonwoven fabric exhibiting cross-direction extensibility and recovery comprises a nonwoven web of staple length fibers of about 0.8 to 3.0 denier having a basis weight of about 1.0 to 4.0 ounces per square yard. A polymeric binder composition substantially uniformly applied to the nonwoven web imparts desired elasticity to the web, with the fabric exhibiting at least about 50% extensibility in a cross-direction thereof, and at least about 90% recovery in a cross-direction. The nonwoven web may comprise synthetic fibers, natural fibers, and blends thereof, as well as continuous filaments. Patterned hydroentanglement of the web acts to entangle the fibers to provide the fabric with desired performance characteristics. A method of making the nonwoven fabric is disclosed. The nonwoven fabric is particularly suited for use in a mattress pad assembly, as also disclosed herein.