In this paper, the wave propagation in phononic crystal composed of auxetic star-shaped honeycomb matrix with negative Poisson's ratio is presented. Two types of inclusions with circular and rectangular cross sections are considered and the band structures of the phononic crystals are also obtained by the finite element method. The band structure of the phononic crystal is affected significantly by the auxeticity of the star-shaped honeycomb. Some other interesting findings are also presented, such as the negative refraction and the self-collimation. The present study demonstrates the potential applications of the star-shaped honeycomb in phononic crystals, such as vibration isolation and the elastic waveguide.