Punch Needle: Thread vs. Yarn Q&A

Designed for Punch Needle Beginners:

Thread vs. Yarn Punch Needle Q&A — Understanding the Difference.

By Kelly Kanyok – Orphaned Wool
© 2026 Kelly Kanyok / Orphaned Wool. All Rights Reserved

If you're new to Punch Needle, the term can be confusing because it refers to two very different types of tools and to the finished artwork each tool creates.

• Thread Punch Needle (Embroidery) – uses fine threads to create detailed, embroidery-like designs. (left side of the above picture)
• Yarn Punch Needle (Rug Punching) – uses thicker yarn or wool strips for bold, textured, rug-like surfaces. (right side of the above picture)

This guide focuses on the Ultra Punch — a type of thread Punch Needle tool and the primary tool I use to create my Orphaned Wool Punch Needle designs.

You'll also find a simple comparison between the Thread Punch Needle and the Yarn Punch Needle to help you understand and see the differences.

 If you are interested in rug punching, many of my Rug Hooking patterns are suitable for use with a Yarn Punch Needle. Just remember to reverse patterns with lettering or directional elements for proper orientation.

What is a Punch Needle tool?

A Punch Needle is a fiber art tool with a hollow handle and a long needle that pushes thread or yarn through fabric to form loops on the front.

How are they used?

• The pattern is drawn on the foundation fabric, which is then considered the backside. 
• Work or (punching) is done from the back of the fabric to the front.
  
• Loops are created on the opposite side of the pattern, which will be the finished front side.

Why all the confusion?

The term "Punch Needle" is often used to refer to both types of tools. This is why beginners frequently confuse the two, which differ significantly in the materials used, the finishes created, and the tools themselves.

Thread - Punch Needle Embroidery

Punch Needle Pattern: Hare with Friends

Types of Threads used for Thread Punch Needle: 

See My Favorite Threads for Punch Needle Embroidery in the Learning Library

• DMC Floss
• Valdani Threads 
• DMC Eco-Vita Wool Thread
• Other high-quality threads

Type of Tool used:

• Ultra Punch Needle Set (or a similar kind of thread punch needle) that includes three different-sized needles and multiple loop-length settings

Needle Sizes & Loop Lengths:

• Small, Medium, Large (to accommodate different thread thickness)
• Adjustable loops (#1–#12) to create different length loops for creativity

Foundation Fabric:

• Primarily Used: Weaver's Cloth (tightly woven, 55% polyester / 45% cotton blend)
• Punch Needle Embroidery can be used to adorn other fabrics, such as finely woven linen, wool, flannel, muslin, or denim.

Finish:

• Fine, detailed loops
• Sheen or matte, depending on thread type
• Can blend thread colors for shading and texture

Punch Needle Pattern: Hare I Am - Created using DMC Eco-Vita Wool Threads, resulting in a beautiful matte finish.

Equipment & Materials list for Thread Punch Needle

• Ultra Punch Needle Kit – small, medium, large needles; adjustable loop lengths; threaders included
• Weaver's Cloth– Best foundation fabric
• Threads – DMC Floss, Valdani Threads, Eco-Vita Wool Thread & other quality threads
• Gripper Frame (preferred) or locking embroidery hoop – keeping the fabric "drum tight."
• Punch Needle Pattern - Paper pattern - ready to trace or pre-printed on Weaver's Cloth.

Tips:

• Choose the correct needle size for smooth punching and secure loops
• Adjust the loop length for added texture in a design
• Reverse patterns with lettering or directional elements for proper orientation

Yarn Punch Needle - Rug Punching

Rug Punching with yarn information

• Tool: Oxford Punch Needle
• Materials: Wool yarn or wool strips
• Fabric: Monk's Cloth, Primitive Linen, Rug Warp
• Finish: Thick, textured, matte
• Best For: Rugs, large pillows, wall hangings

Foundation Fabric used for Rug Punching.

Example of Oxford Rug Punch Needles

Yarn punch needle tools come in different sizes to accommodate yarn thicknesses and create different loop lengths. 

Thread vs. Yarn Punch Needles (Quick Comparison)

Punch Needle Embroidery

• Uses thread
• Fine, detailed loops
• Adjustable Needle for length setting
• Different needle sizes: S, M, L- for different thread thickness
• Weaver's cloth foundation
• Creates smaller-scale fiber artwork

Rug Punch Needle

• Uses yarn or wool strips
• Thick, textured loops
• Fixed needle sizes and loop length
• Heavy, wide-weave foundation fabrics
• Creates larger-scale fiber artwork

Closing Note

Both Punch Needle Embroidery and Rug Punch Needle create looped designs, but they are distinct techniques with different tools and materials. Understanding these differences will help you select the right supplies and achieve the best results for your project.