Use of chemical mutagenesis has been highly successful in most major crops. The objective of this research was to develop ‘naked-tufted’ seed mutants and to incorporate this genetic trait into cotton to enhance crop quality and reduce processing costs. In 1997, six commercial cultivars were treated with 2.45% v/v ethyl methane sulfonate. In 1999, three M3 plants were identified that had partially naked seed coats. The trait was stabilized through individual plant selections from 2000 to 2004. During 2005 and 2006, the homozygous naked-tufted M8 mutant lines were evaluated for lint yield, lint percent, fibers/seed, fibers/mm2, fiber quality, seed oil content, ginning efficiency and yarn spinning performance. Overall, the naked-tufted seed mutants had lower lint yield, lower fibers/seed, lower lint/seed, and lower fibers/mm2 when compared with their original fuzzy parents. The lint turnout from the mutants was similar to the fuzzy parents and the commercial cultivars. The naked-tufted seed mutants had higher seed oil percent, 6–17% lower short fiber contents, significantly reduced seed coat neps (37–42%), higher elongation and yarn tenacity than their fuzzy counterparts. Preliminary data also showed that the naked-tufted mutants required less energy to gin.