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Yarn Stitch Ornaments (In-the-Hoop)

Yarn Stitch Ornaments (In-the-Hoop)

Bring a cozy and whimsical look to your Christmas tree with these unique ornaments! Stitch each shape in-the-hoop, adding a ribbon loop. Then cut out the eyelets and stitch them with yarn to add delightful color and texture. We'll show you how!

Supplies & Materials:

- Small pieces of felt
- Tear-away stabilizer
- Temporary spray adhesive (Gunold KK100)
- Yarn (3-5 weight)
- Ribbon

- Craft knife, seam ripper, or awl
- Tapestry or chenille hand sewing needle (with large eye) for yarn
- Clear or masking tape
- White craft glue (such as tacky glue)

The designs used in this tutorial include:

- X13700, Yarn Stitch Ornament - Hat (In-the-Hoop)

Special Notes:
If the embroidered eyelet gets cut while cutting the openings and some of the threads start to come up, simply apply some white craft glue to the cut area and allow it to dry. This will hold the stitches in place and prevent them from unraveling.

Thicker yarns are harder to thread through the eyelets. As an easier alternative, a thinner yarn can be layered over a section more than once or doubled up to get the same effect.

When you download the design, you will find multiple files. Some are embroidery files, and others are dieline files marked with the letters "DL". Dielines are used to cut the fabric to the correct shape and size. Open and print each dieline file using an embroidery software. If you do not have an embroidery software, take a look at our helpful video on using dielines.


We also recommend Wilcom's Hatch software which comes in different levels depending on what you'd like to use the software for. Hatch Organizer works well to view your designs, print dielines and templates, change design colors, and create basic design layouts. (This is an affiliate link. We may earn commission on purchases made with this link.)

Two printed paper templates showing a cupcake outline with grid lines sit atop a piece of white fabric on a wooden surface.

Spray the backside of the printed dieline for the front of the ornament with a small amount of temporary adhesive.

Smooth it onto a piece of felt.

White felt square with a paper template pinned on top, the template has a bear-shaped outline with cross guidelines, placed on a dark wooden surface.

Cut out the shape. Remove the paper.

Orange-handled scissors and a white felt cutout shaped like a winter hat, placed on a dark wooden surface.

Repeat this process for the back dieline and fabric.

Orange-handled scissors next to two white felt pieces cut in the shape of winter hats with pom-poms, on a wooden surface.

Now that the fabric pieces are cut to the proper shape and size, it's time to embroider the design.

Hoop a piece of tear-away stabilizer. Madeira E-Zee Tear 1.5 oz. or Floriani Tearaway Medium are good choices. Those brands are more fibrous, less paper-like, and will tear more cleanly.

Embroidery hoop with white fabric and stabilizer stretched in it, placed on a wooden table surface. Hoop has beige and gray parts.

Attach the hoop to the machine and load the full embroidery design (not the dieline files). Use a size 11 or 75/11 sharp sewing needle, rather than an embroidery needle. A sharp sewing needle has a smaller, finer point than an embroidery needle, so that will make smaller perforations in the stabilizer.

Embroider the design. The first thing to embroider will be a dieline or outline. This marks the area on the stabilizer for the front fabric piece.

Close-up of a sewing machine needle and presser foot stitching a square shape on white fabric hooped tightly, with parts of the machine's metal components visible.

Remove the hoop from the machine, but do not unhoop the stabilizer.

Spray the back of the front fabric piece with a small amount of temporary adhesive.

Place the fabric right inside the sewn outline.

Embroidery hoop holding white fabric and stabilizer; blue stitching outlines a three-tiered rounded shape on fabric, placed on a wooden surface.

Attach the hoop back onto the machine and continue with the design.

A tack down will sew next. This holds the front fabric in place for the remainder of the design. Then some of the decorative elements will be embroidered.

Close-up of an embroidery machine stitching a white fabric in a hoop. The design outlines a winter hat with a snowflake decoration on top.

On the color change sheet, look for the note that says "back piece tack down." When you get to this section, stop the machine and remove the hoop from the machine but do not unhoop the stabilizer.

Turn the hoop over, so that the backside of the embroidery is facing up.

Cut a piece of ribbon 7" long, and fold it into a loop. Then, position the ribbon on the backside of the ornament so that it is extending out of the top edge. Tape it in place on the back of the embroidery. Also tape the looped end to the hoop to prevent it from sliding around while sewing.

Embroidery hoop on a wooden surface with white fabric hooped and stabilized; stitched outline of a winter hat with a red ribbon loop taped to fabric top.

Next, spray the backside of the back fabric piece with adhesive, and place it inside the shape on the backside of the embroidery.


Embroidery hoop with white felt fabric and a cloud-shaped piece stitched in the center, a red ribbon loop attached on the left side, all on a dark wooden surface.

Since both sides of the ornament will be seen, wind a bobbin with the same thread used in the needle.

Close-up of a sewing machine bobbin filled with translucent thread, seated in the machine's bobbin case area with white plastic components visible.

Attach the hoop back to the machine and continue embroidering the design.

A tack down stitch will sew around the outer edge of the fabric. This binds all the layers together.

Then all the eyelets for the yarn will embroider, followed by the finished satin border.

White embroidery machine stitching an outline of a round hat with a pom-pom and dots on white fabric held in a large embroidery hoop.

Once the embroidery is finished, remove the hoop from the machine. Unhoop the stabilizer, and carefully tear it away.

White fabric square with a cutout of a winter hat and a completed white winter hat ornament with circular stitched patterns and a red ribbon loop on a wood surface.

Use an craft knife, awl, or seam ripper to cut a hole inside of each of the eyelets.

For best results, cut an "x" shape inside each of the circles, rather than trying to actually cut the circle area out completely. This way there is less of a chance of cutting the embroidery.

If the embroidered eyelet does get cut, and some of the threads start to come up, simply apply some white craft glue to the cut area and allow it to dry. This will hold the stitches in place and prevent them from unraveling.

White fabric ornament shaped like a winter hat with stitched patterns, a red loop for hanging, placed on a green cutting mat next to a craft knife.

Cut a piece of yarn about 20" long, and thread one end into the hand sewing needle.

To make the yarn easier to thread through the needle, fold one end inside clear tape and press it as flat as possible.

Close-up of a hand holding a sewing needle threaded with thick yellow yarn, stitching through a small piece of yellow fabric or felt, on a dark wooden surface.

Tie a knot on the opposite end of the yarn from the needle. Thread it through the first hole, so that the knot ends up on the back side of the embroidered ornament.

White fabric bell-shaped ornament with small embroidered circles, a small green yarn stitch on one side, red ribbon loop attached, and a needle with yellow yarn nearby on a wooden surface.

Thread the yarn through the holes to make a design on the front side of the ornament. If the yarn and needle are getting stuck in the holes, cut them open a little more or use a thinner yarn.

White fabric ornament shaped like a winter hat with embroidered swirl details; green yarn threaded through the bottom edge; red ribbon loop on top; needle attached to yarn.

Once completed, tie the lose end of the yarn into a knot on the back side of the ornament.


White embroidered bell-shaped ornament with green yarn stitch accents and a red ribbon loop, placed on wooden surface with two pairs of scissors underneath.

Then repeat to thread yarn through all the different patterns in different colors.

Thin yarn can be easier to thread through the eyelets, and simply threading it over the same area more than once creates a fun chunky yarn look.

White felt winter hat ornament with yellow yarn loops on the cuff and red zigzag embroidery on the body, topped with a pom-pom and a red hanging loop.