This article describes the production of microfiber nonwoven fabrics from segment pie bi-component fibers using air-laying and hydro-entanglement. The bi-component fibers were split into microfibers during hydroentanglement. The microfiber nonwoven fabrics are compared with similar products made from single component fibers. The degree of fiber splitting is found to depend on the jet pressure as well as the fiber position in the web thickness direction. Compared with the nonwovens fabric made from single component fibers, the microfiber nonwoven fabrics have higher tensile strength, lower elongation, higher water absorbency. However, contrary to what was expected, the microfiber nonwovens fabrics have a stiffer handle. This is caused by the increased fiber entanglement and much denser structure for the bi-component microfiber nonwoven fabrics. POLYM. ENG. SCI., 49:1703-1707, 2009. (C) 2009 Society of Plastics Engineers