You can dream of yarn as a symbol of not being truthful as in 'spinning a yarn.' This can also be a play on the word 'yearn' when you are not expressing your true desires. A ball of yarn in a dream can represent wholeness and how aspects that appear to be opposites are actually connected. The ball of yarn ties it all together. To dream of knitting with yarn shows what you are making out of difficulty, and the powerful ways that experience is changing you.