A two-way stretch disposable diaper formed from four cooperating layers, a microfiber top layer to keep the wearer dry, an absorbent pad to collect body exudates, a waterproof layer to keep absorbed fluids within the pad, and a two-way stretch outer support layer. The top layer is formed as a cover for the absorbent pad which is designed to absorb urine and semi-liquid fecal material. The absorbent pad is backed by the waterproof layer or sheet which also covers the pad edges to prevent side leakage. The waterproof layer is anchored to a self-adhesive, two-way stretch support layer which constitutes an outer cover or support layer. The support layer derives its two way stretch and self adhesive qualities from its weave of alternate twist and/or crinkle threads. The support layer includes a plurality of holes in the waist band area which provide added ventilation and drainage when the diaper is used as swim-wear.