The invention aims to provide a natural yarn-dyed fabric and application thereof in home textile products. The pure natural yarn-dyed fabric is prepared according to a method comprising the following steps: (1) making color silk fiber and natural color cotton fiber into yarn respectively; and spinning sequentially according to the procedures of cotton grabbing, cotton blending, cotton opening, cotton feeding, coiling, cotton carding, cotton drawing, roving, spinning, and spooling; and (2) interweaving the color silk yarn and the natural color cotton yarn to obtain the natural yarn-dyed fabric, wherein the color silk yarn is 30 to 60 percent by weight, and the natural color cotton yarn is 40 to 70 percent by weight; and weaving sequentially according to the procedures of beaming, slashing, reeding, jacquard weaving, perching, plaiting, packing and warehousing. Compared with the prior art, the obtained product not only has the characteristics of softness, pendency, special tactility, elegant and dynamic feeling, air and moisture penetrability, simple but elegant luster, and the like, but also feels soft, and has the special health functions of adjusting blood circulation and metabolization of a human body, keeping skin clean, enhancing cell viability of the skin, and preventing the skin from aging and white blood cell from declining in quantity, so that the purpose of the invention is achieved.