Proposed is a knitted fabric with a high quality pocket which is less likely to lose its shape, and a method of knitting the same. A widening stitch is formed in a pocket branched portion (3) with respect to a base knitted fabric portion (2) to obtain a starting end of a pocket bag portion (4). Thereafter, the base knitted fabric portion (2) and the pocket bag portion (4) are knitted. Furthermore, tubular knitting is carried out using the front and back needle beds at a knitting width corresponding to the pocket bag portion in a region of the stitch row held on the front and back needle beds while forming the base knitted fabric portion, a new stitch held on the front and back needle beds formed in the tubular knitting is transferred to form double stitches in the relevant region, and a new stitch serving as the base knitted fabric portion continuing to the pocket bag portion is formed on the double stitches. A secure two-layer knitted fabric can be formed by knitting a secure tubular base knitted fabric portion (7), so that a high quality pocket that is less likely to lose its shape and that has small a level difference is obtained.