The effect of zinc bisdiethylphosphinate (ZnPi) and organoclay on mechanical, thermal, and flame retardant properties of poly(ethylene terephthalate) (PET) fiber was investigated. ZnPi was preferred due to its fusible character at spinning temperature and organoclay was used for synergistic interaction. The mechanical, thermal, and flame retardant properties of fibers were examined by tensile testing, thermogravimetric analysis (TG), and micro combustion calorimeter (MCC). The tensile strength of the PET fiber reduced with the addition of both ZnPi and organoclay. The TG results showed that the inclusion of ZnPi increased the char residue. The MCC results showed that the addition of organoclay increased the barrier effect of formed char which depends on char amount, thickness, and integrity and reduces the maximum heat evolved during the test. This result was also important in terms of showing that the organoclay was effective in thermally thin samples.