A step-by-step guide for punch needle makers using Dwella yarn + the Palette Scout deck

Color is one of the most exciting (and intimidating) parts of punch needle. Whether you're stitching up a bold wall hanging or a soft, modern pillow, it can be tricky to stare at a bunch of yarn in your stash and choose colors that feel fresh and intentional.

This is where Palette Scout shines. In this guide, we’ll walk you through how to use it—step-by-step—with our favorite new wool punch needle yarn, Dwella, by our sister company Gist Yarn.

What is Palette Scout?

Palette Scout is a deck of 180 color cards designed for artists and makers. It comes with a simple and intuitive method to mix and match cards into pleasing color harmonies—perfect for punch needle projects.

Whether you're just getting started or refining your color intuition, Palette Scout helps you skip the stress that comes from choosing colors that look great together, and dive right into stitching.

Why We Love Dwella for Punch Needle

Dwella is a hardy, 100% wool rug yarn from our sister brand, Gist Yarn. It is spun and dyed in small batches in North Carolina. Dwella holds its shape beautifully in punch needle and is available in 24 colors. You’ll see Dwella in all the photos below so you can visualize how the Palette Scout colors translate into wool.

Step-by-Step: Choosing Punch Needle Colors with Palette Scout

Step 1: Start with a Feeling

Before you pick colors, ask yourself:

• What mood do I want this piece to have?

• Where will it live—on a wall, in a frame, on a pillow?
  

• Do I want bold contrast or something soft and blended?

Flip through your yarn stash and pause when a color makes you smile - that’s your starting point and anchor color.

Step 2: Match the Color to a Palette Scout Card

Lay out all of your color cards, and find the closest match in the Palette Scout deck. The match doesn’t need to be perfect, just find it as close as you can get!

Step 3: View the Suggested Harmonies

• Flip the Palette Idea card for that color to its recommended harmonies

• Choose which color harmony you’d like to explore, and pull out all of the Palette Scout cards and yarn in your stash that fits within that color harmony. Remember, don’t worry about exact matches, try to give yourself a lot of options to work with. 

Step 4: Select a Yarn Palette

From these options, pick 3–5 colors (or more!) that you want in your punch needle piece. Choose a range of dark and light values so your final piece has crisp definition between sections and doesn’t look muddy. 

Before punching, line up all of your yarns, preferably on a white or neutral background. Ask yourself:

• Does anything feel too heavy or out of balance?
  

• Is there enough value contrast between each color?
  

• Does it feel cohesive and interesting?
  
  

Make swaps now before you start stitching.

Step 5: Punch with Confidence

With your palette chosen, you can get into the fun part: punching! Let your Palette Scout cards stay beside you as a little roadmap as you choose which colors go where. It’ll help you stay consistent and intentional as the piece builds.

FAQ: 

What kind of punch needle should I use with Dwella yarn?

Dwella is a bulky 3-ply rug yarn, and works well with the Regular sized Oxford Punch Needles. 

Can I use Palette Scout if I only have a few colors in my stash?

Absolutely! Start by matching what you have to the closest Palette Scout card. Even getting close will help you find harmonies within your yarn collection. You can also use the card as inspiration when shopping for more.

I’m a beginner and color theory makes my head spin. Is this too advanced for me?

Not at all. In fact, beginners especially love Palette Scout because it takes away the fear of “choosing wrong.” You’ll be making pleasing color palettes within 5 minutes of opening your new deck, and you’ll spend less time overthinking and more time making.

What if I want to improvise? Does Palette Scout help with that? 

You can totally use Palette Scout as a loose guide. Some makers treat it like a “jumping off point”—gathering colors they love and choosing with intuition instead of following specific color harmonies.