Consumers demand eco-friendly, multifunctional textile yarns with a high performance/price ratio. PET yarns with multifunctional properties (UV-stabilised, flame retardant, etc.) can be achieved by the addition of suitable chemicals to the fibre structure during spinning. However, the addition of such chemicals alters the yarn properties. This alteration becomes more significant with the increase in the variety of additives and usage of recycled PET chips. Thus, producing and commercializing multifunctional PET yarns from recycled chips require deep know-how and expertise. In this study production of a multifunctional (UV-stabilised, flame retardant) PET yarn from recycled chips for outdoor applications is presented. The performance of the developed PET yarns was determined by accelerated artificial outdoor weathering tests. It can be concluded that a UV-stabilised, flame retardant, and recycled PET yarn for outdoor applications with improved mechanical properties is developed, and it is ready to be commercialized