Wool Thread is an early crafting component in Runescape: Dragonwilds that players can get by processing Fleece in Spinning Wheel. You can get Fleece by hunting Sheep and Rams, which you'll find plenty of in the Fractured Plains and Stormtouched Highlands. Despite being an early-game material, Wool Thread remains relevant up until players reach Fellhollow in Dragonwilds, as it's a necessary component to crafting the Padded Clothing that you'll need for smithing Iron armor variants.
You can find plenty of Sheep just roaming around the Fractured Plains, and they're pretty easy to take down even with just basic equipment. Charging at them with melee weapons tends to result in quicker kills since they're not that fast, though two shots with a longbow will do the trick just as well.
If you want to find larger numbers of Sheep in greater concentrations, then go to the Stormtouched Highlands. The Sheep density here is much higher, from what I've experienced, and Rams also tend to be part of big groups here. Unlike regular Sheep, Rams will fight back when attacked, and given the higher number of Garou fighters and the periodic lightning storms in this area, you'll definitely want to bring at least a full set of Bronze gear before going to the Stormtouched Highlands.
When killed, Sheep and Rams will yield Raw Farm Meat, Animal Bones, and Fleece, with the latter being the key ingredient for making Wool Thread in Runescape: Dragonwilds.
Rams drop the same amount of Fleece as Sheep do, though they also drop Ram Horns, which are needed for crafting certain items like the Hunter Stagbow, the Dragonbone Dagger, and the Loom Harness.
To make Wool Thread, simply put all the Fleece you've collected into a Spinning Wheel and let the crafting station do its thing for a while. If you need to make Wool Thread faster, use the Overdrive spell or just make another Spinning Wheel.
The most immediate use of Wool Thread is for crafting Bronze equipment. Pretty much all weapons and armor made in the Bronze tier requires Wool Thread, but that's not all. You'll also need lots of these when you tech up to the Iron tier, albeit in a slightly different form.
Iron equipment (and some mage armor made with Silver and Gold) in Dragonwilds requires Padded Cloth, which needs Wool Cloth and Course Cloth to craft. Wool Cloth is made by combining 3 Wool Thread in a Loom, while Course Cloth is made with 3 Course Thread (made from Flax). Combine Wool Cloth and Coarse Cloth in a Loom upgraded with a Loom Harness to make Padded Cloth.
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