The January 23, 2013 Nintendo Direct announcement teaser showed a Yoshi made out of yarn with the traditional to eat enemies. However, unlike in previous Yoshi games, this does not produce a Yoshi-egg that will then be used as a projectile weapon, it causes Yoshi to become a more corporeal, solid Yoshi. Like in Kirby's Epic Yarn, the original yarn Yoshi can run into enemies without consequence and they will act like he is not even there. Once Yoshi turns solid, though, they will run away in fear since Yoshi can now harm them.
Not much more has been shown so far, although the doors leading "behind" the fabric from the Kirby game seem to be back and collecting gems seems to be a focus again as well. The game is played on a 2D plane but the camera shifts to a 2.5D perspective in some of the released screenshots.
Yoshi's Woolly World supports various amiibo with varying types of functionalities. Most importantly, the game comes with its own line of Yarn Yoshi amiibo in three colors: green, pink and light blue. These allow players to play as Double Yoshi in singleplayer and can save one Yoshi design (read/write).
Normal Yoshi amiibo (Super Smash Bros. Collection & Super Mario Series) will just enable Double Yoshi (read-only) and various other non-Yoshi amiibo will unlock designs based on that character (read-only).
Yoshi's Woolly World was positively received by players, often cited as the best Yoshi platformer since the original Yoshi's Island. The game has sold 1.37 million copies worldwide as of March 31, 2016.