Do you have little balls of yarn left over from old projects? If you crochet or knit, you know what I’m talking about. It’s that small amount of yarn that’s too much to throw away, but not enough for a big project. Soon, you have bins full of scrap yarn and no idea what to do with it.
Well, get ready to turn that clutter into something beautiful! Today, I’m going to show you how to make the perfect DIY yarn tassel keychain.
This is one of my favorite scrap yarn projects because it’s so easy and fun. You don’t need any special skills, and the finished keychains look amazing. They are a huge hit at craft markets and make wonderful handmade gifts. Let’s get started and give that leftover yarn a new life!
Why You’ll Love This Easy Craft Idea
Before we grab our scissors, let’s talk about why this project is so great. It’s more than just a way to pass the time; it’s a smart and creative solution for every crafter.
First, it’s the best way to use up your yarn stash. Instead of letting those pretty colors sit in a box, you can turn them into something useful. This is a fantastic project if you’re trying to use what you have before buying new yarn.
Second, these keychains are amazing products to sell. People love small, handmade items. A DIY yarn tassel keychain made with soft velvet yarn or bright, fun colors can sell really well at craft fairs or online. It’s a quick project that can bring in a little extra money.
Finally, it’s just plain fun! There’s something so relaxing about wrapping yarn and giving the tassel a final trim. It feels like giving it a little haircut. It’s a simple joy that leads to a beautiful result.
What You’ll Need for Your Keychain

You don’t need much to get started. Most of these items are probably already in your craft room. Here is a simple list of the materials and tools for this project.
| Item | What It’s For & Helpful Tips |
|---|---|
| Scrap Yarn | This is the star of the show! You can use any type, from cotton to chunky to velvet. Velvet yarn makes for a very soft and popular tassel. |
| Keychain Clasp | This turns your tassel into a real keychain. You can find these at any craft store or online. Look for ones with a little loop at the bottom. |
| Sharp Scissors | You need sharp scissors to get a clean, even cut at the bottom of your tassel. |
| Cardboard or Your Hand | You’ll use this to wrap your yarn around. A small piece of cardboard (about 4 inches wide) gives you a nice, even tassel. |
| Beads (Optional) | A few wooden or colorful beads can add a special touch to your keychain. |
| Tapestry Needle | This large, blunt needle is perfect for threading yarn through beads and securing the keychain clasp. |
How to Make a DIY Yarn Tassel Keychain: A Step-by-Step Guide
Ready to make your first tassel? Just follow these simple steps. I’ll walk you through everything, and you’ll have a finished keychain in no time!
Step 1: Wrap Your Yarn to Create the Tassel Body
First, we need to create the main part of the tassel. Take your scrap yarn and start wrapping it around your piece of cardboard or the four fingers of your hand. Keep your fingers slightly spread to make the tassel longer.
How many times should you wrap it? It depends on your yarn.
- For a medium-weight yarn (like cotton), wrapping it around 25-30 times works well.
- For a very soft, slippery yarn like velvet, you might want to wrap it more times for a fuller look.
- For a chunky yarn, you will need fewer wraps, maybe only 15 times.
Once you’re happy with the thickness, trim the yarn.
Step 2: Tie the Top and Cut the Loops
Now, cut another piece of yarn about a foot long. Gently slide your wrapped yarn off the cardboard or your hand, being careful to keep the loops together.
Take the new piece of yarn and thread it through the top of the loops. Tie a tight double knot to secure it. This knot will hold your entire tassel together. Be careful not to pull too hard if you are using velvet yarn, as it can snap. These two long ends of yarn will be used later to attach the keychain.
Next, take your sharp scissors and cut through all the loops at the bottom of the tassel.
Step 3: Create the Tassel “Neck”
To give your tassel that classic look, we need to create the little “neck” or “ball” at the top.
Cut another piece of yarn, about a foot long. Lay it flat on your table. Place your tassel on top of it, about an inch down from the top knot.
Take the ends of the new yarn piece and tie a tight knot around the tassel. To make it extra secure, flip the tassel over and tie another knot on the other side. This makes sure it will never come undone. The ends of this yarn will just hang down and become part of the tassel.
Step 4: Add Beads and the Keychain Clasp
Now for the fun part! It’s time to add your beads and turn this into a keychain.
Thread one of the long yarn ends from the top knot through your tapestry needle. Add any beads you like. Mixing and matching natural wood beads is a great look, but feel free to get creative!
After your beads are on, thread the needle through the loop on your keychain clasp. To make it strong, loop the yarn through the clasp two or three times.
Then, push the needle back down through the beads. Once you’re out of the beads, guide the needle right through the center of the tassel head so the yarn end joins the rest of the tassel strands. Do the same with the other long yarn end from the top knot (you don’t need to add more beads). This will hide the ends and make everything secure.
Step 5: The Final Haircut!

Your DIY yarn tassel keychain is almost done! The last step is to tidy up the bottom. The ends will probably be a little messy and uneven.
Hold the tassel firmly and use your sharp scissors to give it a straight trim across the bottom. This part is so satisfying! Trim a little at a time until you have a clean, perfect edge. You should also trim the ends of the yarn you used to tie the neck so they match the length of the other strands.
FAQs
How to make a keychain step by step?
First, you create a yarn tassel. Then, you can add fun beads. Finally, you attach a metal keychain clasp. Our guide above shows you every simple step.
How to make a simple tassel keychain?
This project is very simple. You just wrap yarn around your hand. Tie it, then cut the bottom loops. Add a keychain ring, and you are done!
How to make a tassel step by step?
It is very easy to make a tassel. First, wrap yarn many times. Tie the top of the loops tightly. Cut the bottom of the loops. Then, tie a new string near the top to make a head.
How to make a tassel out of yarn with yarn?
Yes, you can do this easily. Our guide uses only yarn to make the tassel. You do not need any special tools. Just yarn, scissors, and your hands.
How to make lip gloss into a keychain?
That is a very creative idea! This guide focuses on yarn crafts. Making a lip gloss keychain would need different tools. It might use special holders or strong glue.
Your Scraps Have a New Purpose!
And there you have it! A beautiful, handmade keychain made from yarn that might have been thrown away. You’ve learned how to make tassels that are perfect for gifts, for selling, or just for decorating your own bag.
This project shows that you don’t need much to create something wonderful. All it takes is a little bit of scrap yarn and a few simple steps.
What colors will you use for your first DIY yarn tassel keychain? Let us know in the comments below! We’d love to hear about your creations. Happy crafting


