Ring spinning is known for its high energy consumption, and reducing yarn twist is an effective strategy to decrease electricity usage. However, lowering yarn twist can negatively affect yarn structure and quality. Three-strand spinning offers a solution by reducing yarn twist while maintaining or even enhancing yarn quality. This study systematically investigates the effects of yarn twist and strand space on yarn quality to optimize the spinning parameters for three-strand spinning. The findings indicate that using three-strand spinning with a strand space of 3 mm and a twist multiplier of 3.0 produces yarn with comparable strength to conventional ring-spun yarn with a twist multiplier of 3.6 while significantly reducing hairiness. Comparative analysis of knitted fabrics shows that fabrics made from optimized three-strand spun yarn exhibit superior performance, including higher bursting strength, better air permeability, enhanced abrasion resistance, and improved pilling resistance. The study demonstrates that three-strand spinning technology is a promising approach for producing sustainable low-twist yarn, effectively reducing energy consumption while maintaining or enhancing yarn and fabric performance.