With the development of modern Internet and mobile networks, there is an increasing need for collaborative privacy-preserving applications. Secure multi-party computation (SMPC) gives a general solution to these applications and has become a hot topic. Yao's garbled circuit approach is a leading method in designing protocols for secure two-party computation (2PC), which is a very important base in SMPC. However, there are only few protocols obtaining the fairness of secure 2PC, and only one of them was constructed within the standard simulation framework but with very low efficiency. In this paper, we propose an efficient fair secure Yao's garbled circuit protocol within the universally composable (UC) framework. By comparing with all other fair secure Yao's protocols, our new protocol enjoys three advantages. First, our protocol is more efficient than any other fair secure Yao's protocols within the standard simulation framework. Second, our protocol is the first fair UC-secure Yao's garbled circuit protocol, so it is more secure than other fair Yao's protocols. Third, there does not require any third party involved in our protocol; thus, it is very suitable for many applications. Copyright © 2013 John Wiley & Sons, Ltd.