The evaluation of thermal-wet properties contributes to the research and development of fabrics, but there is no effective method to address and achieve evaluation of the hygroscopic and cooling properties of knitted fabrics to date. Therefore, an evaluation method aiming at this issue was proposed, and based on experimental investigation the hygroscopic and cooling property of fabrics was estimated by the combined evaluation of moisture management and the thermal property in a dynamic state. The moisture management property shows the liquid water absorption and diffusion performance of fabrics. Beside this, the thermal properties of fabrics were tested respectively in the dry and wet states. The thermal property of dry fabric showed the heat transfer and radiation of fabric itself, whereas the thermal property of wet fabric demonstrated the combined effect of the coupled heat–moisture property of wet fabric and the cooling function of moisture evaporation and diffusion. Furthermore, the thermal properties of fabrics were tested using a YG606 II thermal resistance tester, which was refitted by a program to control heating power. Eight knitted fabric samples having different cooling comfortability rates or values were selected to verify the feasibility and effectivity of this method. The consistency of this method was also verified by the obtained experimental results. Based on the obtained results, it can be observed that this method was well consistent with verified experimental results. Therefore, an effective method for the evaluation of hygroscopic and cooling knitted fabrics was obtained that satisfies the measurement of performance, and desirable fabric properties can be achieved for various applications.