Rainbow yarn is a multicolored fiber that features a sequence of bright shades inspired by the colors of a rainbow. It is commonly used in knitting, crochet, weaving, and other fiber arts to create colorful patterns and visually dynamic designs. Depending on the dyeing method, rainbow yarn may display repeating stripes, gradual color changes, or mixed tonal effects throughout the strand. Crafters often select rainbow yarn for blankets, scarves, hats, toys, and decorative accessories because it adds strong visual contrast and variety without requiring multiple yarn changes. Available in different fibers and weights, rainbow yarn supports creative textile projects with vibrant and varied color distribution.