This study presents a novel yarn structure designed to enhance moisture-wicking performance using innovative yarn covering techniques. The structure features a helically shaped covering yarn that reduces inter-fiber spaces in core staple fiber-spun or filament yarns, forming microchannels with superior capillary action. This design significantly improves wicking height and facilitates efficient sweat dispersion via a push-pull mechanism. Various core and cover yarn combinations were tested, with core yarns including hydrophilic viscose staple fibers, draw-textured polyester yarn and polyester based staple fiber yarns. Covers were made of polyester, polypropylene and nylon/polyester core sheath filament yarns, with different linear densities. Single and double covering structures were examined, with the optimal surface helix angle achieved at 300 twists per meter. The single-covered polyester 75D DTY yarn for both core and cover achieved the highest wicking distance (8.2 cm), outperforming control polyester DTY yarn alone and double-covered yarns. The twist-optimized wrapping structure was identified as the main factor in improving wicking height. Customized drying tests assessed water evaporation rates alongside wicking performance. The single-covered polyester DTY/DTY yarns showed the shortest drying times and highest evaporation rates, though no direct correlation between wicking and drying times was observed. This yarn structure demonstrated at least a 15% and goes up to 60% improvement in wicking performance without chemical treatments, offering a sustainable solution for moisture management. This research marks a step toward eco-friendly yarn technology, providing enhanced moisture management while minimizing environmental impact. Future studies will focus on fabric development for optimal drying, dyeing, hand feel, and drape.