The invention relates to a method for producing a towel, specifically a low twist towel, comprising the following steps: Z twisting a thick yarn and separately Z twisting a fine count yarn; unevenly S twisting the Z-twisted yarns to make the volume of the thick yarn more than that of the fine count; weaving the yarn to produce a fabric; processing the fabric with hot water to reduce inner tension in the yarn and make the fabric become fluffy. Fabric produced by this method can solve the dependency on PVA, reduce energy consumption and material consumption, and prevent water pollution. This method for producing a low twist towel is environmentally friendly, healthy, and energy saving.