Needle felting is the process of combining loose fibers using barbed needles to make the felt. This process may result in a more fuzzy felt, depending on the degree of felting used. Some feel more textural and blended-color combinations may be achieved with this felting method.

Wet felting is the process of combining loose fibers using hot water, soap, and rubbing to make the felt. This tends to be a more compact felt than that created by needle felting. It generally creates a more durable felt, and is the best process for felt used in clothing.

The photo depicts two felted pieces. The one on the left was needle felted and has a fuzzy quality. The one on the right was wet felted, resulting in a smoother and more compact felt. Both have stitched embellishment.