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The game's logo

Yoshi's Wooly World adds co-op to Yoshi's Island or whatever place the game is set in. The graphic style is also 3D and is set in a yarn world similar to Kirby's Epic Yarn and the game is made by Good-Feel, also similar to Kirby's Epic Yarn. Gameplay is much similar to the usual Yoshi games (Super Mario World 2: Yoshi's Island, Yoshi's Island DS).

Yoshi's Wooly World features fabric, yarn environments. In this game, Yoshi Eggs are replaced by Yarn Balls. Yoshi can still eat enemies, spit enemies, make eggs and throw eggs. Smiley Flowers and Winged Clouds reappear in Yoshi's Wooly World. Coins are replaced by jewels. Yoshi can throw yarn balls at outlines to make them solid and can eat and swallow yarn walls and platforms.

In co-op mode, players can control 2 Yoshis which are Green Yoshi and Red Yoshi (a possible reference to Mario and Luigi is green). Yoshis can eat partners but all their yarn balls are lost. If any of the Yoshis go too far off screen, they are placed onto a Winged Yoshi Egg and the Winged Yoshi Egg is transported to the other Yoshi (similar to the multiplayer bubble function in New Super Mario Bros. Wii and New Super Mario Bros. U). Another function also similar to New Super Mario Bros. Wii and New Super Mario Bros. U is that when one player goes inside a Warp Pipe, the other player transports to inside the pipe too.

Yoshi's Wooly World is also planned to use amiibo functions.

|===ALLIES===|
Huffin' Puffin
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|===PLAYABLE===|
Green Yoshi
Red Yoshi (Co-op Only)
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|===ITEMS===|
Chomp Rock
Smiley Flower
Winged Cloud
Wonder Wool
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|===ENEMIES===|
Koopa Paratroopa
Koopa Troopa
Needlenose
Nipper Plant
Nipper Spore
Piranha Plant
Shy Guy
Wild Ptooie Piranha
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|===BOSSES===|
A dog in flames
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|===LEVELS===|
A mountain level with Shy Guys.
A cave level with Nipper Plants and Piranha Plants.[2]
A level with Huffin' Puffins[4]
A living room-like area with many pillow platforms.
A woods-themed level in sunset.