A 4-point interpolatory subdivision scheme with a tension parameter is analyzed, and the local property of 4-point interpolatory subdivision scheme and a kind of G1-continuity su4cient condition between surfaces as well as between curves are discussed. An e4cient method of generating natural boundary points of 4-point interpolatory curve is presented, as well as a surface modeling method with the entire fairing property by combining energy optimization with subdivision scheme. The method has been applied in modeling 3D virtual garment surface.