FORM 10-K                                    Page 235

Exhibit 10.12


                     CONSULTING AGREEMENT


     CONSULTING AGREEMENT, dated December 5, 1995, by and
between Dewey L. Trogdon ("Trogdon") and Cone Mills Corporation
(the "Company").
                            RECITAL

     Trogdon retired from active service as an employee of the
Company, effective March 31, 1992.  Because of his familiarity
with the business and affairs of the Company, Trogdon was in a
position to provide valuable consultation and advice to the
Company and the Company desired to obtain such consultation and
advice.  Accordingly, the Company agreed to retain Trogdon as
a consultant, and Trogdon agreed to provide consulting
services, during the period beginning April 1, 1992, and ending
December 31, 1992, pursuant to a Consulting Agreement dated
December 19, 1991.  The Company and Trogdon agreed to an
extension of the consulting arrangement through 1993, 1994, and
1995 pursuant to Consulting Agreements dated November 19, 1992,
December 3, 1993, and November 10, 1994, respectively.   The
Company and Trogdon have agreed to continue the consulting
arrangement during the period beginning January 1, 1996, and
ending December 31, 1996 (the "Consulting Period").

     NOW, THEREFORE, Trogdon and the Company agree as follows:

     1.   Consulting Services.  Subject to the terms and
          provisions of this Agreement, the Company hereby
          engages Trogdon to perform consulting services during
          the Consulting Period.  Trogdon hereby accepts such
          engagement and agrees to render such consulting
          services pertaining to the business of the Company as
          the Chief Executive Officer of Cone shall request
          from time to time during the Consulting Period.

     2.   Fees.  During the Consulting Period, the Company
          shall pay to Trogdon a consulting fee of $15,000 per
          calendar quarter (payable on March 31, 1996, June 30,
          1996, September 30, 1996, and December 31, 1996) and,
          in addition, shall reimburse Trogdon for any travel
          and entertainment expenses reasonably incurred by him
          in connection with rendering consulting services
          hereunder upon submission of appropriate
          documentation therefor.



<PAGE>
FORM 10-K                                    Page 236

Exhibit 10.12   (continued)

     3.   Independent Contractor.  During the Consulting
          Period, Trogdon shall be an independent contractor
          and not an employee of the Company.  Accordingly,
          Trogdon shall determine when, where and how the
          consulting services required of him under this
          Agreement will be performed, shall be responsible for
          the payment of all employment, income and other taxes
          payable by reason of his receipt of consulting fees
          under this Agreement, and shall not be eligible to
          participate in any pension, profit sharing, health,
          disability, life, or other employee benefit plan or
          program maintained by the Company.

     4.   Termination by Death.  If Trogdon dies during the
          Consulting Period, this Agreement shall thereupon
          terminate, but the Company shall pay to Trogdon's
          estate all consulting fees and unremibursed expenses
          to which he would otherwise have been entitled under
          this Agreement through the end of the Consulting
          Period.

     5.   Entire Contract.  This Agreement constitutes the
          entire contract and agreement of the parties and
          supersedes and replaces all other prior agreements
          and understandings, both written and oral, with
          respect to the performance of personal services by
          Trogdon for the Company during the Consulting Period.

     6.   Miscellaneous.  This Agreement may not be amended or
          modified except by an instrument in writing signed by
          the party against whom any such modification or
          amendment is sought to be enforced.  No wavier of any
          breach of this Agreement shall operate or be
          construed as a waiver of any subsequent breach.  This
          Agreement shall be construed in accordance with the
          laws and judicial decisions of the State of North
          Carolina.

     IN WITNESS WHEREOF, Trogdon and the Company have signed
this Agreement as of the day and year first above written.

                              By:  /s/Dewey L. Trogdon       
                              Title:  Chairman of the Board   

                              CONE MILLS CORPORATION

                              By:  /s/ J. Patrick Danahy     
                              Title:  President & CEO