<PAGE>   1
                       SECURITIES AND EXCHANGE COMMISSION

                                WASHINGTON, D.C.
                                      20549

                                    FORM 10-Q

                   QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934



For Quarter Ended December 27, 1997         Commission File No. 0-1915



                              THOMASTON MILLS, INC.
--------------------------------------------------------------------------------

             GEORGIA                                     58-0460470
------------------------------------        ------------------------------------
(State or other jurisdiction of             (I.R.S. Employer Identification No.)
incorporation or organization)


          115 East Main Street, P.O. Box 311, Thomaston, Georgia 30286
--------------------------------------------------------------------------------
               (Address of principal executive offices) (Zip Code)


Registrant's telephone number, including area code (706) 647-7131.
                                                   ---------------         


Indicate the number of shares outstanding of each of the issuer's classes of
Common Stock, as of the close of the period covered by this report.

Class A  Common Stock $1 Par Value - 5,620,518 Shares including
         710,888 Treasury Shares

Class B  Common Stock $1 Par Value - 1,873,506 Shares including
         243,140 Treasury Shares

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the registrant
was required to file such reports) and (2) has been subject to such filing for
the past 90 days.


Yes        X                        No
         -----                         -----


<PAGE>   2


                                      INDEX
                      THOMASTON MILLS, INC. AND SUBSIDIARY



PART 1.       FINANCIAL INFORMATION

Item 1.       Financial Statements (Unaudited)

              Condensed consolidated balance sheets -- December 27, 1997 and
              June 28, 1997

              Condensed consolidated statements of operations -- three months
              ended December 27, 1997 and three months ended December 28, 1996
              and six months ended December 27, 1997 and six months ended
              December 28, 1996.

              Condensed consolidated statements of cash flows -- six months
              ended December 27, 1997 and six months ended December 28, 1996.

Item 2.       Management's Discussion and Analysis of Financial Condition
              and Results of Operations.



PART II. OTHER INFORMATION

Item 1.       Legal Proceedings

Item 2.       Change in Securities

Item 3.       Defaults upon Senior Securities

Item 4.       Submission of Matters to a vote of Security Holders

Item 5.       Other information

Item 6.       Exhibits and Reports on Form 8-K



SIGNATURES


<PAGE>   3


PART 1 - FINANCIAL INFORMATION

                      THOMASTON MILLS, INC. AND SUBSIDIARY
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                             (Dollars in Thousands)

<TABLE>
<CAPTION>
                                                          DEC. 27, 1997        JUNE 28, 1997
                                                          -------------        -------------
<S>                                                       <C>                  <C>
ASSETS
CURRENT ASSETS
   Cash & cash equivalents                                   $  1,369             $  1,886
   Accounts receivable, less allowance of $500                 39,182               50,140
   Inventories--Note B                                         57,938               48,729
   Refundable income taxes                                      2,278                2,898
   Other current assets                                         2,904                2,097
                                                             --------             --------
          TOTAL CURRENT ASSETS                                103,671              105,750

PROPERTY, PLANT AND EQUIPMENT                                 250,896              247,506
   Less allowances for depreciation                           163,645              158,133
                                                             --------             --------
                                                               87,251               89,373
OTHER ASSETS                                                    2,383                2,574
                                                             --------             --------
                                                             $193,305             $197,697
                                                             ========             ========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
   Accounts payable                                          $  8,967             $ 16,060
   Accrued liabilities                                          8,331                8,529
   Current portion of long-term debt
      and capital lease obligations                             2,999                3,034
                                                             --------             --------
          TOTAL CURRENT LIABILITIES                            20,297               27,623

OBLIGATIONS UNDER CAPITAL LEASE -
   LESS CURRENT PORTION                                         1,529                1,100

LONG-TERM DEBT                                                 68,659               62,917

DEFERRED INCOME TAXES                                           5,758                5,757

OTHER LIABILITIES                                               1,019                  839

SHAREHOLDERS' EQUITY
   Class A Common Stock--5,620,518 shares
     outstanding including 710,888 treasury shares at
     September 28, 1997 and June 28, 1997                       5,621                5,621
   Class B Common Stock--1,873,506 shares
     outstanding including 243,140 treasury shares at
     September 28, 1997 and June 28, 1997                       1,873                1,873
   Additional paid-in capital                                   8,904                8,904
   Retained earnings                                           85,065               88,483
                                                             --------             --------
                                                              101,463              104,881
   Less treasury stock - at cost                                5,420                5,420
                                                             --------             --------
                                                               96,043               99,461
                                                             --------             --------
                                                             $193,305             $197,697
                                                             ========             ========
</TABLE>

NOTE: The Balance Sheet at June 28, 1997 has been
derived from the Audited Financial Statements at that
date. See Notes to Condensed Financial Statements.
<PAGE>   4


                      THOMASTON MILLS, INC. AND SUBSIDIARY
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
             (Dollars in Thousands except Share and Per Share Data)


<TABLE>
<CAPTION>
                                              Three Months Ended              Six Months Ended
                                         Dec. 27, 1997  Dec. 28, 1996  Dec. 27, 1997  Dec. 28, 1996
                                         -------------  -------------  -------------  -------------
<S>                                      <C>            <C>            <C>            <C>
Net sales                                 $    68,036    $    68,172    $   141,248    $   137,085
Cost of sales                                  61,438         63,518        132,743        128,367
                                          -----------    -----------    -----------    -----------
                                                6,598          4,654          8,505          8,718

Selling, general
 and administrative expenses                    4,915          4,913         10,069         10,132
                                          -----------    -----------    -----------    -----------
                                                1,683           (259)        (1,564)        (1,414)

Other income                                       72            100            175            163
                                          -----------    -----------    -----------    -----------
                                                1,755           (159)        (1,389)        (1,251)

Interest expense                                1,215            957          2,542          1,786
                                          -----------    -----------    -----------    -----------

Income (loss) before
 income taxes                                     540         (1,116)        (3,931)        (3,037)

Provision for income taxes
 (benefit)                                        205           (424)        (1,494)        (1,154)
                                          -----------    -----------    -----------    -----------

Net income (loss)                         $       335    $      (692)        (2,437)        (1,883)
                                          ===========    ===========    ===========    ===========


Wgt. Average Number of Shares - Basic       6,539,996      6,539,996      6,539,996      6,539,996
 Basic earnings (loss) per share          $    0.0500    $   (0.1100)       (0.3700)       (0.2900)


Wgt. Average Number of Shares - Diluted     6,551,466      6,539,996      6,539,996      6,539,996
 Diluted earnings (loss) per share        $    0.0500    $   (0.1100)   $   (0.3700)   $   (0.2900)

Dividends paid per share                  $    0.0750    $    0.0750    $    0.0750    $    0.0750
</TABLE>






<PAGE>   5



                      THOMASTON MILLS, INC. AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                             (Dollars in Thousands)

<TABLE>
<CAPTION>
                                                    SIX MONTHS ENDED         SIX MONTHS ENDED
                                                    DECEMBER 27, 1997        DECEMBER 28, 1996
                                                    -----------------        -----------------
<S>                                                 <C>                      <C>
OPERATING ACTIVITIES
Net income (loss)                                        $ (2,437)               $ (1,883)
Adjustments to reconcile net income (loss)
  to net cash provided by operating
  activities:
      Depreciation and amortization                         8,494                   9,029
      Loss on sale of property, plant
      and equipment                                             0                     161
Changes in operating assets and
  liabilities:
      Accounts receivable                                  10,958                   6,023
      Inventories                                          (9,209)                 (6,726)
      Other assets                                              4                  (1,221)
      Accounts payable and accrued expenses                (7,111)                 (8,112)
                                                         --------                --------

      NET CASH  PROVIDED BY (USED IN)
      OPERATING ACTIVITIES                                    699                  (2,729)

INVESTING ACTIVITIES
Purchases of property, plant and equipment                 (6,373)                 (2,876)
Less capital lease obligations incurred                       664                       0
                                                         --------                --------
   Cash for property, plant and equipment                  (5,709)                 (2,876)
Proceeds from sales of property, plant
   and equipment                                                2                       1
                                                         --------                --------
      NET CASH USED IN INVESTING
      ACTIVITIES                                           (5,707)                 (2,875)

FINANCING ACTIVITIES
Proceeds from revolving lines of credit
   and long-term debt                                       8,664                  29,000
Less capital lease obligations incurred                      (664)                      0
                                                         --------                --------
   Cash proceeds from borrowings                            8,000                  29,000
Principal payments on revolving lines of
   credit, long-term debt and capital lease
   obligations                                             (2,528)                (22,550)
Cash dividends paid                                          (981)                   (981)
                                                         --------                --------

      NET CASH PROVIDED BY
      FINANCING ACTIVITIES                                  4,491                   5,469
                                                         --------                --------

      DECREASE IN CASH
      AND CASH EQUIVALENTS                                   (517)                   (135)

Cash and cash equivalents at beginning
   of period                                                1,886                   2,077
                                                         --------                --------
Cash and cash equivalents at end
   of period                                             $  1,369                $  1,942
                                                         ========                ========
</TABLE>


<PAGE>   6


                      THOMASTON MILLS, INC. AND SUBSIDIARY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 27, 1997

NOTE A -- BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-Q and Rule 10-01 of
Regulation S-X. Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments (consisting
of normal recurring accruals) considered necessary for a fair presentation have
been included. Operating results for the three month period ended December 27,
1997 are not necessarily indicative of the results that may be expected for the
year ending June 27, 1998. Certain Fiscal 1997 balances have been reclassified
to conform with the Fiscal 1998 classifications. For further information, refer
to the consolidated financial statements and footnotes thereto included in the
Company's annual report for the year ended June 28, 1997.

NOTE B -- INVENTORIES

The components of inventory consist of the following:


<TABLE>
<CAPTION>
                                          (Dollars in Thousands)
                              DECEMBER 27, 1997              June 28, 1997
                              -----------------              -------------
     <S>                      <C>                            <C>
     Raw materials                 $  8,709                     $  9,197
     Work in process                 33,290                       32,012
     Finished products               31,161                       22,742
     LIFO reserve                   (15,222)                     (15,222)
                                   --------                     --------
                                   $ 57,938                     $ 48,729
                                   ========                     ========
</TABLE>






<PAGE>   7


NOTE C -- NET INCOME (LOSS) PER COMMON SHARE

The Company adopted Statement of Financial Accounting Standards ("SFAS") No. 128
"Earnings per Share" in its second quarter ended on December 27, 1997. SFAS No.
128 replaced the previously reported primary and fully diluted earnings per
share with basic and diluted earnings per share. Unlike primary earnings per
share, basic earnings per share excludes any dilutive effects of options,
warrants and convertible securities. Diluted earnings per share is very similar
to the previously reported fully diluted earnings per share. All earnings per
share amounts for all periods have been presented and where necessary, restated
to conform to SFAS No. 128 requirements.

The following table sets forth the computation of the numerator and denominator
used in the calculation of basic and diluted earnings per share:



<TABLE>
<CAPTION>
                                                            (Dollars in Thousands except Share and Per Share Date)

                                                           Three Months Ended                      Six Months Ended
                                                    Dec. 27, 1997      Dec. 28, 1996       Dec. 27, 1997       Dec. 28, 1996
                                                    -------------      -------------       -------------       -------------
<S>                                                 <C>                <C>                 <C>                 <C>
Numerator:
   Net income (loss) from continuing operations      $       335        $      (692)        $    (2,437)        $    (1,883)
                                                     -----------        -----------         -----------         ----------- 

Numerator for basic and diluted earnings per share   $       335        $      (692)        $    (2,437)        $    (1,883)
                                                     -----------        -----------         -----------         ----------- 

Denominator:
   Denominator for basic earnings per share -
   Weighted average shares                             6,539,996          6,539,996           6,539,996           6,539,996

   Dilutive effect of potential common shares -
   Employee stock options                                 11,470                N/A                 N/A                 N/A
                                                     -----------        -----------         -----------         ----------- 

   Denominator for diluted earnings per share -
   adjusted weighted-average shares and
   assumed conversions                                 6,551,466          6,539,996           6,539,996           6,539,996
                                                     -----------        -----------         -----------         ----------- 


Basic earnings per share                             $    0.0500        $   (0.1100)        $   (0.3700)        $   (0.2900)
                                                     -----------        -----------         -----------         ----------- 

Diluted earnings per share                           $    0.0500        $   (0.1100)        $   (0.3700)        $   (0.2900)
                                                     -----------        -----------         -----------         ----------- 

Potentially dilutive common shares related to
options outstanding:
   Not considered in calculation due to net loss             N/A              7,583               6,607               6,725
                                                     -----------        -----------         -----------         ----------- 

   Not considered in calculation due to average
   price of Company's common stock exceeding
   exercise price of options                             605,669            538,000             632,326             538,000
                                                     -----------        -----------         -----------         ----------- 
</TABLE>






<PAGE>   8


THOMASTON MILLS, INC. AND SUBSIDIARY

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS

RESULTS OF OPERATIONS

Sales of $68,036,000 for the second quarter ended December 27, 1997 were down
slightly from sales of $68,172,000 for the second quarter last year. Sales of
$141,248,000 for the six months ended December 27, 1997 were up 3% over sales of
$137,085,000 for the comparable six months last year. Although the sales mix for
the second quarter fiscal year 1998 reflected more profitable margins, this
improvement in margins was offset by decreased volume during the quarter.

Cost of sales for the quarter just ended decreased to $61,438,000 or 90.3% of
sales. For the second quarter fiscal year 1997, cost of goods sold were
$63,518,000 or 93.2% of sales. For the first six months of fiscal years 1998 and
1997, cost of goods sold as a percentage of sales was 94.0% and 93.6%,
respectively. Raw material cost decreases in the second quarter and first six
months of fiscal year 1998 continue to be offset by high fixed costs per unit
due to low capacity utilization of the Company's manufacturing facilities.

Gross profit for the second quarter fiscal year 1998 increased $1,944,000 to
9.7% of sales as compared to gross profit of 6.8% of sales for the second
quarter last year. For the first six months of this fiscal year, the Company
generated gross profit of 6.0% of sales. For the first six months of last fiscal
year, gross profit was 6.4% of sales.

Selling, general and administrative expenses were 7.2% of sales for the second
quarter this year and last year. For the six months ended December 27, 1997,
selling, general and administrative expenses were 7.1% of sales as compared to
7.4% of sales for the six months ended December 28, 1996. The Company strives to
maintain selling, general and administrative expenses at a low percentage of
sales ratio.

Other income during second quarter fiscal year 1998 was $72,000 and $100,000 for
fiscal year 1997 second quarter. Other income relates to miscellaneous equipment
sales and interest earned on the Company's short-term investments of cash.

Interest expense increased $258,000 from $957,0000 in second quarter fiscal year
1997 to $1,215,000 in second quarter fiscal year 1998. For the first six months
of fiscal year 1998, interest expense was $2,542,000 as compared to $1,786,000
for the first six months of fiscal year 1997. This increase was the result of
increased borrowings under the Company's various credit agreements.

Income tax expense (benefit) for the second quarter and first six months of
fiscal years 1998 and 1997 was 38% of taxable income (loss), which approximates
the statutory income tax rate for the tax jurisdictions in which the Company
operates.

For the second quarter fiscal year 1998, the Company generated net income of
$335,000 or $.05 per share as compared to a second quarter fiscal year 1997 net
loss of $692,000 or $.11 per share. For the six months ended December 27, 1997,
the Company sustained a loss of



<PAGE>   9

$2,437,000 or $.37 per share as compared to a net loss of $1,883,000 or $.29 per
share for the six months ended December 28, 1996.

LIQUIDITY AND CAPITAL RESOURCES

The Company continues to maintain a strong financial position. At December 27,
1997, working capital was $83,374,000 as compared to $80,990,000 at December
28,1996. The ratio of current assets to current liabilities was 5.11:1 at
December 27, 1997 and 5.62:1 at December 28, 1996.

Financing activities provided cash flow of $4,491,000 during the six months
ended December 27, 1997. The primary use of funds was $5,709,000 in purchases of
property, plant and equipment. Operating activities used funds of $699,000.

During first quarter fiscal year 1997, the Company completed the financing for
an expansion of the Lakeside Comforter Plan and an addition of a new dye range.
This project began in the fourth quarter of fiscal year 1996. Financing was
provided with $18,000,000 in taxable Industrial Revenue Bonds issued through the
Thomaston-Upson County Industrial Development Authority. These bonds will be
retired over a fifteen year period with only interest payable for the first
three years. Proceeds from the sale of the bonds were applied to the Company's
revolving credit facility until needed for the project.

During the fourth quarter of fiscal year 1997, the Company revised and expanded
its revolving credit agreement with a group of banks to provide for unsecured
borrowings of up to $39,000,000. At December 27, 1997, $4,000,000 was unborrowed
and available under this agreement.

INVENTORIES

Inventories at December 27, 1997 and December 28, 1996 were $57,938,000 and
$49,436,000, respectively. Total inventory turns on an average annualized rate
were 4.6 times for the first six months of fiscal year 1998 and 5.2 times for
the first six months of fiscal year 1997.

RAW MATERIALS

The Company's primary raw material is cotton. As a commodity, cotton is traded
on established markets and periodically experiences price fluctuations. The
Company monitors the cotton market and buys its cotton from brokers. The Company
has not had and does not anticipate any material difficulty in obtaining cotton.

In order to assure a continuous supply of cotton, the Company enters into cotton
purchase contracts for several months in advance of delivery which either
provide for (1) fixed quantities to be purchased at a pre-determined price, or
(2) fixed quantities to be purchased at a price to be determined (at a later
date). When the Company sells its product to its customers, the cost of cotton
under existing cotton purchase contracts is taken into account in calculating
the price for the Company's product. The Company generally attempts to match
product sales contracts with fixed price cotton purchase contracts and uses
market price cotton contracts to anticipate future needs and subsequent product
sales contracts. To the extent prices are sometimes fixed in advance of
shipment, the Company may benefit from its cotton purchase contracts to the
extent prices thereafter rise, or incur increased cost to the extent prices
thereafter fall.


<PAGE>   10


GATT

In December 1993, 117 countries reached an agreement under the General Agreement
on Tariffs and Trade that would cover new areas of trade, further cut tariffs
and strengthen multilateral free-trade rules by creating a World Trade
Organization (WTO) as its successor. This agreement was ratified by the United
States Congress and went into effect on July 1, 1995. As part of this new
agreement, the Multifiber Arrangement (MFA) under which textile and apparel
trade had been controlled, will be phased out along with its import quotas over
a ten-year period. Tariffs on textiles will be cut by an average of 11.6% over
ten years. A weighted average tariff for products sold by Thomaston Mills, if
imported, would be cut by 8.8%. Under the agreement, quotas on the least
sensitive import products will be phased out over the first five years and
quotas on the most sensitive import products will not be affected until the
latter part of the ten-year period.

The WTO agreement contains some provisions which may have a favorable impact on
the textile industry. An assembly rule of origin amendment makes it illegal for
a non-WTO member country to assemble garments from pieces cut in a member
country and then export the garments as originating in the country where they
were cut. Additionally, the agreement preserves the authority of the President
of the United States to control imports from non-WTO countries such as Taiwan or
China.

Although the WTO agreement may reduce the cost of certain imported textiles, the
Company believes that upgraded technology resulting in increased productivity
and lower costs will enable it to compete in a global market.

FORWARD-LOOKING STATEMENTS

Certain of the above statements contained herein under the caption "Management's
Discussion and Analysis of Financial Condition and Results of Operations"
constitute "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1996. Such forward-looking statements
involve known and unknown risks, uncertainties and other factors which may cause
the actual results, performance or achievements of the Company to be materially
different from any future results, performance or achievements expressed or
implied by such forward-looking statements. Such factors include, among other
things, business conditions, volatility of commodities markets, ability to
control operating costs, developing successful new products and maintaining
effective pricing and promotion of its products.


<PAGE>   11


PART II -     OTHER INFORMATION



ITEM 1.       LEGAL PROCEEDINGS

              (a)    As of December 27, 1997, there were no material pending
                     legal proceedings, other than routine litigation incidental
                     to its business, to which the Company was a party or to
                     which any property of the Company was subject. Such routine
                     legal proceedings are not believed to be material to the
                     Company.

              (b)    Not applicable

ITEM 2.       CHANGE IN SECURITIES

              (a)      (b)      Not applicable.

ITEM 3.       DEFAULTS UPON SENIOR SECURITIES

              (a)      (b)      Not applicable.

ITEM 4.       SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

              The election of directors, approval of the Company's 1997 Stock
              Option Plan and selection of Ernst & Young as the Company's
              independent auditors were approved by the holders of the Company's
              Class B Common Stock at the Annual Meeting of Shareholders held on
              October 2, 1997. Set forth below are the results of the voting:

<TABLE>
<CAPTION>
                                                        Votes          Votes
                                                         For          Against    Abstentions
                                                      -----------    ---------  -------------
                  <S>                                 <C>            <C>        <C>
                  Election of Directors

                  Thomas D. Adams, Jr                  1,517,138           0         9,295
                  C. Ronald Barfield                   1,517,138           0         9,295
                  Archie H. Davis                      1,517,138           0         9,295
                  H. Stewart Davis                     1,517,138           0         9,295
                  George H. Hightower                  1,517,138           0         9,295
                  George H. Hightower, Jr              1,517,138           0         9,295
                  Neil H. Hightower                    1,517,138           0         9,295
                  William H. Hightower, Jr             1,517,138           0         9,295
                  Rosser R. Raines                     1,517,138           0         9,295
                  Dr. Jerry M. Williamson              1,517,138           0         9,295
                  Dom H. Wyant                         1,517,138           0         9,295

                  Approval of 1997 Stock Option Plan   1,297,431      57,760       171,242

                  Selection of Ernst & Young           1,516,633       7,500         3,362
</TABLE>
<PAGE>   12

ITEM 5.           OTHER INFORMATION

                  Not Applicable.

ITEM 6.           EXHIBITS AND REPORTS ON FORM 8-K

                  (a)      Exhibits:

                           13.1  Quarterly Report to Shareholders dated
                                 December 27, 1997.

                           27.0  Financial Data Schedule (for SEC purposes only)

                  (b)      The Company did not file any reports on Form
                           8-K during the three months ended December 27, 1997.


<PAGE>   13






                                   SIGNATURES



Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.


                                    Thomaston Mills, Inc.



                                    Neil H. Hightower
                                    -------------------
                                    Neil H. Hightower
                                    President and Chief
Date:  February 12, 1998            Executive Officer
       ______________________



                                    Rosser R. Raines
                                    -----------------------------
                                    Rosser R. Raines
                                    Treasurer-Principal Financial
Date:  February 12, 1998            Officer
       ______________________