Objective Conventional aqueous phase dyeing produces a large amount of wastewater containing high concentrations of dyes and salts. A new waste cooking oil-water two-phase dyeing system was investigated to prove the effectiveness in cotton dyeing, and the minimal discharge of hydrolyzed dyes, salts and alkali. Method An oil-water two-phase dyeing system and a conventional aqueous dyeing system were adopted to dye cotton fabrics. Wear performances include capillary adsorption, combustion behavior, kubbing resistance, wrinkle-recovery behavior, water vapor permeability, moisture regain, and hand feeling of fabrics dyed in the two systems were studied and compared. Results Wicking heights of two-phase dyed cotton fabric are about 10% and 20% lower than their water dyed counterparts in both warp and weft directions, respectively. A small amount of oil may remain in the fiber interior, causing plug of the capillaries. Continuous burning time of two-phase dyed cotton fabric are slightly shorter than that of aqueous dyed cotton fabric. Smoldering time of two-phase dyed cotton fabrics were (8.14 ± 0.58)s and (7.90±1.43) s, respectively, and that of aqueous dyed cotton fabric were (7.70 ± 0.67) s and (8.24 ± 0.61) s, respectively. The limit oxygen index (LOI) of two-phase dyed cotton fabric was (17.60±0.05)%, close to (17.85±0.06)%, the LOI value of aqueous dyed counterparts. With regard to wear resistance, two-phase dyed cotton fabric resembled aqueous dyed cotton fabric with 24±2 and 25±2 cycles, respectively. The warp and weft elastic recovery angles of two-phase dyed cotton fabric are (68.32 ± 10.98)(°) and (65.80 ± 8.31)(°), respectively, higher than the angles of aqueous dyed cotton fabric are (57.92 ± 9.97)(°) and (54.92 ± 11.78)(°), respectively. Recovery angles of two-phase dyed cotton fabric are (62.14 ± 7.23)(°) and (54.10 ± 8.80)(°), respectively, also moderately higher than that of aqueous dyed cotton fabric. Moisture regain of two-phase dyed and aqueous dyed cotton fabrics are (8.75±0.84)% and (9.59±0.23)%, respectively, while moisture transmittance of two-phase dyed and aqueous dyed cotton fabrics are (3 827±453) and (2 562 ± 136) g/(m2·24 h), respectively. Overall hand feeling indices of two-phase dyed and aqueous dyed cotton fabrics are 0.60±0.02 and 0.58±0.02, respectively, indicating similar hand feeling of the two fabrics. Conclusion In general, although there were some slight differences in wear performances and hand feeling between cotton fabrics dyed in a two-phase system and an aqueous system, most of the properties could meet the industry standards. © 2023 China Textile Engineering Society. All rights reserved.