Rachael walks into a cafe in a small town and joins six women sitting in a circle knitting. Sally, one of the women, goes outside to get better cell service to search up a pattern. Rachael introduces herself and shows the group what she’s working on — a hat with stars — and they help her get started. 

The group continues to knit together and gossip. They discuss Michael Morgan, who disappeared after he was caught shoplifting and burglaring. The group asks Rachael why she came to a knitting group if she didn’t know how to knit and she said that she likes to get caught up on the gossip when she moves to a new town. Later that night, in her notebook, she writes down Michael as “the most recent disappearance,” along with notes on sewing stitches. 

In the weeks following, Rachael spends time alone staring out the window or at a computer screen. She finished her scarf, along with a matching hat and fingerless gloves. She grabs coffee during the day with some of the women from the knitting group and gets updates on who has gone missing. Rachael becomes an avid knitter and when she goes to the next meeting, one of the leaders, Liz, tells her they would like to invite her to a more formal knitting group in the town called the Yarnbomardiers, taking Sally’s place because she recently disappeared. Rachael accepts. 

The Yarnbomardiers wrap the town center in knitted wool characters and scenes from local life and meet in an isolated hut with no cell service. When she gets to the hut, Rachael finds a circle of women surrounding a sheet of wool. In her third week of visiting the hut, she stops along the way at a small stand of trees where she finds small lengths of wool caught in the bark with diamonds knitted into the fabric. She pockets two of them and carries on to the hut. 

After her work, she sits in her car and writes down all she can remember of the gossip. In the next meeting, they discuss car and shop windows in the town being smashed recently and accuse Rachael of doing it after they find her notes. Suddenly, Rachael’s upper arms are impaled by knitting needles and she topples onto a pile of knitting. When she wakes up, she finds she is outside and being knitted into the fabric of a blanket by the group of women. In the distance, she sees corpses who suffered a similar fate. 

One of the women explains that they are respectable ladies just trying to keep the order and peace of the small town and making troublemakers disappear. Tied down to wool, she feels raw wool brush up against her feet and feels a sheep begin to gnaw.