Eucalyptus Yarn: Benefits and Uses in Knitting, Crochet, Weaving and Yarn Crafts

In the world of eco-conscious crafting, eucalyptus yarn is emerging as one of the most exciting plant-based fibres available. Soft, breathable and gentle on the skin, this innovative yarn blends the beauty of natural materials with the benefits of modern sustainable production. Whether you're a knitter, crocheter or weaver, eucalyptus yarn offers an incredible balance of practicality and luxury all while being kind to the planet.

In this article, we’ll walk you through everything you need to know about eucalyptus yarn - what it is, how it’s made, its benefits, how it compares to other fibres and how to use it in your next project. If you’ve been looking to expand your fibre knowledge (or your stash), this is the perfect yarn to explore.

What Exactly Is Eucalyptus Yarn?

Eucalyptus yarn is a plant-based fibre made from the pulp of eucalyptus trees. It falls into the same family of regenerated cellulose fibres as bamboo, seaweed and sugarcane yarns but with its own unique characteristics.

The yarn is created by extracting cellulose from sustainably grown eucalyptus trees and converting it into fibre through a process that’s designed to be low-impact, water-conscious and closed-loop (meaning most of the water and chemicals are reused, not discarded). The result is a silky-soft, breathable and biodegradable yarn that offers a beautiful alternative to traditional animal- and petroleum-based fibres.

The most common commercial name for eucalyptus fibre in textiles is Lyocell (you might also see it labelled as TENCEL™, a branded form of lyocell made from eucalyptus and other hardwoods).

How Is Eucalyptus Yarn Made?

Let’s take a look behind the scenes to see how this innovative fibre is made:

1. Sourcing the Eucalyptus

The process starts with sustainably grown eucalyptus trees, typically cultivated without the use of pesticides or irrigation. Eucalyptus grows quickly and thrives in poor-quality soil, making it a renewable and efficient crop.

2. Extracting the Cellulose

The harvested wood is chipped and processed to extract cellulose, the structural material found in plant cell walls. This is the base for eucalyptus yarn.

3. Turning Pulp into Fibre

The cellulose is dissolved using a non-toxic organic solvent (unlike harsher chemicals used in viscose rayon production). It’s then pushed through spinnerets (think tiny showerheads) to form filaments, which are cooled and turned into fibres.

4. Drying & Spinning

The fibres are dried, combed and spun into yarn. At this point, they can be dyed, blended or textured to suit different crafting needs.

This method is known as a closed-loop process, meaning nearly all of the water and solvents used in production are captured, cleaned and reused, making it one of the most environmentally responsible textile processes available today.

What Makes Eucalyptus Yarn Special?

Eucalyptus yarn isn’t just good for the planet. It’s also a dream to work with. Here are just a few of the reasons why crafters love it:

Softness and Drape

Eucalyptus yarn has a beautifully smooth and silky texture. It glides through your hands with minimal resistance, making it perfect for sensitive skin and wearable items like tops, scarves and baby garments.

Breathability and Moisture-Wicking Properties

Thanks to its natural moisture management, eucalyptus yarn is highly breathable and wicks moisture away from the skin. This means it keeps you cool in summer and cosy in winter. It’s an ideal choice for garments worn close to the body.

Hypoallergenic & Antibacterial

Eucalyptus yarn is naturally hypoallergenic and has antibacterial properties, making it a thoughtful choice for baby items, those with skin sensitivities and anyone looking for clean, skin-friendly fibres.

Sustainable from Root to Stitch

From its low water usage to its efficient production process, eucalyptus yarn is a sustainability superstar. It’s biodegradable, compostable and made with respect for the environment at every stage.

Easy Care

Many eucalyptus yarns are machine washable and hold their shape well. This makes them practical for everyday wear, gifting and homewares.

What Can You Make With Eucalyptus Yarn?

Eucalyptus yarn is surprisingly versatile, and its softness, strength and drape make it suitable for a wide range of projects. Here are a few ideas to get your creativity flowing:

Summer Tops and Lightweight Garments

Due to its breathable and moisture-wicking properties, eucalyptus yarn is a fantastic alternative to cotton or bamboo for warm-weather wearables.

Baby Garments and Accessories

With its silky softness and hypoallergenic properties, eucalyptus yarn is perfect for delicate baby skin. Think bonnets, jumpers, booties and even baby blankets.

Scarves and Shawls

The beautiful drape and sheen make eucalyptus yarn a lovely choice for flowy shawls, wraps or statement scarves.

Washcloths and Reusable Wipes

Soft, absorbent and antibacterial means that eucalyptus yarn is also a great option for eco-conscious homewares!

Home Décor

Eucalyptus blends work beautifully in woven or knitted cushion covers, lightweight throws and even table runners for an elegant, table setting.

Tips for Working with Eucalyptus Yarn

Ready to try it out? Here are a few quick tips to help you get the best results from your eucalyptus yarn:

• Use sharp needles if knitting. The smoothness of the yarn can make it a bit slippery, so sharper tools help keep your stitches neat.

• Watch your tension. Eucalyptus yarn has a beautiful drape, but it’s less elastic than wool. Keep your tension consistent and avoid pulling too tightly.

• Block gently. Steam blocking or wet blocking works well to open up stitches and enhance the drape of the final fabric.

• Let the yarn shine – The subtle sheen and stitch definition look great in simple patterns, so don’t be afraid to keep it minimal and elegant.

Why We Love Eucalyptus Yarn at Fancy Yarns Australia

Eucalyptus yarn has quickly become one of our favourite plant-based fibres here at Fancy Yarns Australia. It aligns beautifully with our commitment to sustainability, ethical sourcing and mindful making.

Not only does it feel amazing in your hands, but it also carries a quiet strength, a softness rooted in nature, brought to life through thoughtful design. And let’s be honest, it makes everything look just a little bit more special.

We are excited to have introduced eucalyptus yarns like Myrtle to our store. Myrtle is lightweight, breathable and perfect for everyday crafting that still feels like a luxury.

Eucalyptus yarn is more than a trend. It’s part of a movement towards sustainable crafting that feels just as good as it looks. With its silky texture, breathable nature and low environmental impact, it’s a fibre we’re proud to champion and excited to share with our community.

Whether you’re making a mindful gift, a soft staple for your wardrobe or experimenting with new fibres, eucalyptus yarn offers a fresh and thoughtful option for your next project.

Ready to try it for yourself? Explore our range of eucalyptus and other plant-based yarns and start stitching with purpose today.