The present invention provides a method for manufacturing a composite yarn of paper, e.g., traditional Korean paper, and a composite yarn manufactured thereby, a method for manufacturing a fabric using the same and an automotive interior material manufactured thereby. More particularly, the present invention relates to a method for manufacturing a composite yarn of traditional Korean paper by using a traditional Korean paper yarn and a synthetic yarn, in which the composite yarn can be used in weaving and knitting, and a method for manufacturing a fabric as an automotive interior material using the same. Accordingly, the present invention provides a method for manufacturing a composite yarn of paper, comprising twisting a tape-type paper yarn, and covering the twisted paper yarn as a ground yarn at least two strands of synthetic yarn as an effect yarn to manufacture a composite yarn of paper of 160˜700 denier.