Yarn-dyed fabric is a type of fabric made by weaving yarns that have been dyed in specific colors to create patterns and designs in the fabric. The yarns are dyed before the weaving process, and the resulting fabric has the design literally woven into it. This takes additional time, planning, and engineering to achieve a particular design, which can account for the slightly higher price point of yarn-dyed fabrics.

Yarn-dyed fabrics can be identified by their most obvious aesthetic differences from printed fabrics. In most cases, yarn-dyed fabrics will be done in designs like stripes, plaids, or ikats. The front and back side of the fabric is usually just as useful as the front, making it a versatile choice for clothing and home textiles.

In contrast to yarn-dyed fabrics, piece-dyed fabrics involve coloring the raw yarn after the weaving process. Piece-dyeing is the most common and economical process of dyeing fabric, over a shorter period of time. Another method is solution-dyeing, which involves coloring the raw material first before turning it into actual yarn.

Yarn-dyed fabrics are commonly used in making shirts, tablecloths, kurtis, bedsheets, and home textiles. They are perfect for patterns such as plaid or gingham and can hold color better than piece-dyed fabrics.