Intended is to provide a knitted fabric which can have its peripheral edge portion formed into a smoother curve, and its knitting method. The knitting method knits a fabric having an arcuate knitted portion in at least a part of its peripheral edge portion. The knitted fabric by the method has an arcuate knitted portion in at least a part of the peripheral edge portion of the knitted fabric which is knitted by a weft knitting machine having a pair of needle beds at least on the front and back. The knitting method is characterized in that a set-up portion is formed commonly for the front and back knitted fabrics, in that the front and back knitted fabrics of the set-up portion are knitted by different carriers, in that the knitted fabric width is reduced and converged at a plurality of portions of the knitting width of the knitted fabric so that the set-up portion is formed into an arcuate shape, and in that the front and back knitted fabrics are so jointed that their right and left side edge portions may be opening portions for the knitted fabric.