Felting. Felting is done with 100% wool. There are several types of felting. If you look at wool closely it has microscopic barbs that when agitated will group together to make a felted fabric. One way of creating felt is by using a felt needle for the agitation. The other way is to knit or crochet something then run it through a washer and dryer for the agitation. Both ways of felting create a felted fabric that you can use for other craft projects.