Fabric made from Merino wool yarn is often used in the production of high-end outdoor aerobic clothing, and contrary to popular belief, it is neither itchy nor overly hot. Merino wool fabric does provide some warmth. The athlete is able to avoid hypothermia while wearing wool, as opposed to another material, such as cotton. Though one of its renowned elements is its wicking abilities — it draws sweat away from the skin and retains the moisture, though the clothing still feels dry to the touch.

Due to its uniquely thin fibers, this type of wool does not retain odors — bacteria cannot find a solid surface to grow on, making it anti-microbial, as well. It also is hypoallergenic, as is most wool. The fabric of merino wool yarn will shrink when washed or dried, but not much more than would a similar cotton garment, and it can often easily be stretched back to its original shape.

Merino wool yarn can also be blended with possum fur or polyester, as well as cashmere and silk to make into merino wool blend yarns. When combined with the latter fabrics, the ultrafine wool makes for a smooth and soft garment. Popular garments made from merino wool yarn include lightweight knits and base athletic layers, sweaters, and socks. Buyers should be sure to check the garment tag, as some wool should only be dry-cleaned or hand-washed.