Yarn isn’t just for knitting scarves—it’s one of the most versatile (and budget-friendly) materials you can use for Christmas crafts.
With a few simple supplies like glue, sticks, and maybe a bit of paper or felt, you can turn yarn into everything from cozy wrapped Christmas trees to handmade ornaments you’ll treasure for years.
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The best part? These projects work for both kids and adults, whether you’re crafting solo with a hot glue gun or making little keepsakes together at the kitchen table.
In this list, you’ll find 15 yarn Christmas craft ideas that are festive, easy to make, and perfect for gifting or decorating.
From colorful wreaths and DIY Christmas tree decorations to small yarn-wrapped ornaments that add a personal touch, there’s something here for every skill level—and plenty of inspiration to make your holiday season a little more handmade.
1. DIY Yarn Wrapped Nativity Christmas Ornament
CREDIT: BIG FAMILY BLESSINGS
Celebrate the reason for the season with a yarn-wrapped nativity ornament. Wrapping the yarn around the form gives it a soft, homespun feel, making it a meaningful and personal addition to your tree ornaments collection.
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2. Yarn Wrapped Christmas Wreath Ornaments
CREDIT: PAPER & GLUE
These little yarn-wrapped wreaths are just too cute! Using green yarn and a cardboard circle base, wrap until fully covered, then add sparkling gems for a festive pop. A ribbon loop makes them ready to hang on your Christmas tree, and they also make sweet gift toppers.
3. DIY Macrame Christmas Ornament
CREDIT: PRETTY LIFE GIRL
Bring a boho touch to your Christmas tree with these pretty macrame ornaments. Using just yarn (or cord) and a few easy knots, you can create decorations that feel both modern and timeless. They also make thoughtful handmade gift ideas.
4. Easy DIY Chunky Yarn Wreath for Winter
CREDIT: MAKING FRUGAL FUN
If you’re looking for a statement piece, this chunky yarn wreath is the coziest thing you can hang on your door this winter. Big, soft yarn wrapped around a wreath form makes for a quick project with big impact — perfect for Christmas and beyond.
5. Yarn Wrapped Christmas Tree Ornament
CREDIT: EASY PEASY & FUN
Turn simple cardboard triangles into adorable yarn-wrapped Christmas trees! Wrap green yarn around your tree shape, then glue on mini pom-poms for ornaments and a larger one for the star on top. These DIY Christmas tree decorations are a fun and easy yarn craft for kids that adds a colorful handmade touch to your holiday décor.
6. 3D Yarn Wrapped Snowman Craft
CREDIT: RED TED ART
This cheerful little snowman is all bundled up in soft yarn and ready to brighten your holiday décor. Kids will love wrapping the yarn to bring their snowman to life, and you can add cute extras like buttons, a scarf, or even a mini hat. A cozy and easy yarn Christmas craft that’s perfect for family time.
7. Mini Yarn Hats Ornaments
CREDIT: EASY PEASY & FUN
Adorable is an understatement for these tiny yarn hats! Made with a cardboard ring and wrapped yarn, they look like miniature winter beanies. Perfect for hanging on the Christmas tree or giving as little handmade gifts.
8. Yarn Tree Christmas Craft
CREDIT: JUGGLING ACT MAMA
These cone-shaped Christmas tree crafts are a festive way to use yarn in your holiday decorating. Simply wrap foam or cardboard cones with colorful yarn, then top with a glittery star. Try red, white, and candy-cane stripes for a cheerful holiday look!
9. Paper Plate Christmas Tree Craft
CREDIT: NON-TOY GIFTS
This yarn-wrapped Christmas tree craft starts with a humble paper plate and turns into something adorable. Kids can wrap the yarn around the tree shape, then decorate it with buttons, pom-poms, or glitter for extra holiday cheer.
10. Yarn Wrapped Santa Treat Cups
CREDIT: KARA CREATES
These Santa suit treat cups are a crafty way to gift cookies, candies, or little presents. Wrap red yarn around a cup, add a white yarn trim, and finish with black buttons. They make adorable homemade gift ideas that double as Christmas décor.
11. DIY Yarn Christmas Tree
CREDIT: RE-FABBED
This wrapped Christmas tree craft is so simple, even the kids can help! Just wrap yarn around a tree-shaped form, add a few embellishments, and you’ve got an adorable Christmas tree decoration for your mantle, table, or windowsill.
12. Gods Eye Yarn Stars
CREDIT: THE CRAFT TRAIN
These colorful stars are a classic yarn craft with a festive twist. Made with yarn wrapped around sticks, they’re an easy Christmas craft for kids that doubles as tree ornaments or even gift toppers.
13. Yarn Stockings
CREDIT: A WELL-PURPOSED WOMAN
Give your tree ornaments a cozy twist with these yarn-wrapped stockings. Cardboard cutouts are wrapped in soft yarn, finished with a felt cuff, and decorated with buttons or wooden initials. Perfect for adding a handmade feel to your Christmas tree or giving as a thoughtful little gift.
14. Circle Crochet Holiday Garland
CREDIT: MAKES & TAKES
Add some handmade charm to your home with a circle crochet garland. Whether you hang it on the Christmas tree, drape it over the mantle, or use it as festive party décor, these colorful circles are simple to make and give off that warm, crafty holiday vibe.
15. Santa Yarn Christmas Ornaments
CREDIT: MESSY LITTLE MONSTER
Nothing says “Merry Christmas” quite like a jolly Santa ornament! Wrap yarn around a Santa-shaped base, add the fluffy white beard and hat trim, and you’ve got a keepsake ornament to treasure year after year.
Whether you’re wrapping trees, making ornaments, or creating cozy décor, these Christmas yarn crafts are a wonderful way to add handmade warmth to the season.
So grab your yarn, gather the family, and let the holiday crafting fun begin!