Nestled between the hills of southwest Donegal and the Atlantic Ocean, Donegal Yarns has gone through many transformations since its initial establishment. Set up in the early 1900s by the state sponsored Congested Districts Board, it was designed to provide employment in an area which was dependent on agriculture and home-based crafts. During the 1920s and the establishment of the Free-State, responsibility was handed over to Gaeltarra Eireann. The company expanded and set up an additional mill in the 1970s.

The name Donegal Yarns was adopted in the early 2000s and is now synonymous with tradition and quality spinning. They are one of the last remaining companies producing this indigenous and authentic product in Ireland. They operate a complete vertical production process from raw wool, through to dying, blending, carding and spinning. The finished product is high quality distinctive flecked yarn which comes in a range of colours, reflecting the colours of the Donegal landscape.