In this study, stainless steel (SS) filaments are wrapped in Ge fibers to form core-spun yarns. The yarns along with 500 D polyester (PET) fibers undergo weaving, thereby forming functional woven fabrics. The experiment is composed of two parts:yarns and fabrics. The yarns are twisted with TPI of 8, 9, 10, 11, and 12, and then tested for tensile strength and tensile elongation. The yarns possess mechanical properties that are dependent on the TPI—the higher the TPI, the better the mechanical properties. The maximal mechanical properties occur when the core-spun yarns are made of 12 TPI where the maximal tensile strength is 5.26 N and the lowest elongation is 43.2%. As for the functional woven fabrics, they are made of Ge/SS core-spun yarns as the weft yarns and 500 D PET yarns as the warp yarns. The tensile strength, tensile elongation, negative ion release, electromagnetic interference shielding effectiveness (EMI SE), and air permeability tests are conducted, determining the optimal woven fabrics. The 12 TPI core-spun yarns provide the woven fabrics with the maximal tensile strength of 153.6 N and the optimal elongation at break of 10.08%. In addition, the woven fabrics made with 8 or 9 TPI core-spun yarns exhibit an optimal EMI SE of 41 dB, an optimal air permeability of 212 cm3/cm2/s, and an optimal release amount of negative ion of 550–600 ions/cc. The proposed woven fabrics have a broad range of applications, such as functional garments and bedding.