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4 Steps That Make Chenille Yarn So Soft for Makers and Home Decorators Chenille yarn is a fuzzy, caterpillar-textured yarn made by trapping short fiber pile between two twisted core yarns and cutting that pile to make it stand out. The same word covers the fabric woven or knit from that yarn. You’ll find it on sofas, in cozy throws, on sweaters, and along decorative trims, wherever a soft, dimensional surface matters more than a smooth one. TL;DR: Properly locked or heat-fused cores significantly reduce shedding and wear in chenille fabrics, especially for upholstery that faces daily use. …