The invention provides a multifunctional soft and clean color yarn developed by using dyed cotton, wood fiber, cashmere wool and spun silk soft as raw materials and using ring-spun cotton spinning equipment through a transformed soft and clean spinning technology. Firstly, the cotton, the wood fiber, the cashmere wool and the spun silk are dyed, then, a spun silk and wood fiber cotton bag blending method is used for making wood fiber/spun silk raw slivers, next, the wood fiber/spun silk raw slivers, color cotton raw slivers and cashmere wool raw slivers are blended in a sliver blending mode for making drawing slivers, and the drawing silvers are made into rough yarns through a roving frame; finally, the unique spinning features after the transformation of the soft and clean spinning technology are combined for spinning the rough yarns into spun yarns. The cotton, the wood fiber, the cashmere wool and the spun silk in the soft and clean color yarn are respectively dyed, the cotton spinning equipment is used for carrying out technical study of the spinning technology, the soft and clean spun composite color spun yarn realizing the color blending of the cotton, the wood fiber, the cashmere wool and the spun silk in different proportions is developed, the problems of dyeing color fastness, wear-resistance fastness and thermal migration fastness of four kinds of fiber are solved, the spinnability of the dyed fiber is improved, and the clean production of project product color spun yarns is realized.