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Well, it depends on the needle :)

General rule of thumb is: if it flows through it easily it can be used. You should, however make sure it's not too thin either. Otherwise the needle with punch a large hole and the loops made with thin yarn will not be able to stay in. In that case you can double or triple the strands!

Also, avoid super soft yarn as it tends to be a bit "slippery" and the loops tend to not be very even.

If you're making a rug use only rug yarn. The yarns below are for tapestries and other home decor, but not durable enough to be walked on.

So, let's look at the needles I've used one by one. I'll give you links for all yarns from craft stores I've tried:

SKC Adjustable punch needle 

- I use it in most of my kits
- It's the most economical option with 4 loop length options
- It takes medium to bulky yarn, but only certain bulky brands
    Size 4 / medium / worsted:
    • Michael's Impeccable Yarn - by far the most favorite in terms of texture and size
    • Red Heart Super Saver yarn - a bit thinner and feels lower quality, but it works
    • Hobby Lobby I love this yarn - pretty comparable to the red heart yarn
    • Joann's Big Twist Value Yarn
    • Caron One Pound Yarn - nice texture, but it only comes in one pound size
    Size 5 / bulky:

    Lavor Adjustable Punch Needle - 5.5 mm

    - This is a similar sized needle as the SKC, but it can take a bit bulkier yarns as well!

    - You can use all of the above (some of the medium sized yarn might have to be used double stranded) plus:

    Size 5 bulky and size 6 super bulky

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