Over the last decade, the rapid development of wearable electronics has generated renewed interest in textiles. The integration of advanced nanotechnology and microelectronics with well‐established textile production processes has resulted in textile electronics, that are lightweight, flexible, breathable, and conformable, which broadens the applications of electronic products. The hierarchical textile structure, ranging from a single fiber to twisted yarns and various fabrics, is suitable for constructing multifunctional flexible devices. In particular, yarn, which bridges between fiber and fabric, is advantageous owing to its easy integration into wearable formats via weaving, knitting, or braiding. However, because of the dearth of effective interdisciplinary communication between researchers of electronic and textile engineering, fabricating yarn‐based devices with superior mechanical properties and versatile electronic functionality is difficult. Therefore, this review provides an overview of yarn‐based electronics, followed by a systematical summary of recent progress in yarns with respect to material and device design, multifunctional integration, and applications in wearable devices, including sensors, actuators, stealth, batteries, and nanogenerators. Furthermore, the major challenges and future developments in this field are discussed.