There is provided a method of knitting a compression bandage, The method comprising knitting a first course of a first type of yarn; stitching a second course of a second type of yarn to the first course, the second type of yarn being able to stretch; and stitching a third course of the first type of yarn to the second course. Stitching the second course comprises stitching the second type of yarn under tension so as to stretch the second type of yarn; and inlaying a transverse elastic thread along the second course such that once stitched, the second type of yarn in the second course pulls the adjacent first and third courses together so as to hold the elastic thread substantially in place.