The breaking strength of spun yarn is accepted as one of the most important parameters for assessment of yarn quality and one basic way to increase profit and quality in textile process is to hold yarn breakage to a minimum level. The mechanism of yarn failure under tensile loading decides the strength of staple yarns. This article presents the critical review of various theoretical and experimental works pursued on static and dynamic failure mechanism of ring, rotor, air-jet and friction spun staple yarns. The reported failure mechanism of yarns in woven fabrics is also summarized. The various material, spinning and testing parameters influencing the static and dynamic failure mechanism are discussed.