Collocations for yarn - noun

fine, thick
coloured/colored
cotton, synthetic, wool, etc.

length, piece
ball

knit, knit with, spin, weave
The yarn is woven into a coarse fabric.

thread
The yarn has to be threaded through the needle.

dye
use

in a/the yarn
There's a knot in the yarn.

entertaining, good, gripping (esp. BrE), rattling (BrE), ripping (BrE)
He went on to spin an entertaining yarn about his army days.
Galton's life makes a rattling good yarn.

adventure, seafaring

spin (sb), tell (sb)
He tried to spin us some yarn about how he was collecting for the church. It was all lies.

yarn about