Source : Webster's Revised Unabridged Dictionary (1913)

Woolly \Wool"ly\, a.
   1. Consisting of wool; as, a woolly covering; a woolly
      fleece.

   2. Resembling wool; of the nature of wool. ``My fleece of
      woolly hair.'' --Shak.

   3. Clothed with wool. ``Woolly breeders.'' --Shak.

   4. (Bot.) Clothed with a fine, curly pubescence resembling
      wool.

   {Woolly bear} (Zo["o]l.), the hairy larva of several species
      of bombycid moths. The most common species in the United
      States are the salt-marsh caterpillar (see under {Salt}),
      the black and red woolly bear, or larva of the Isabella
      moth (see Illust., under {Isabella Moth}), and the yellow
      woolly bear, or larva of the American ermine moth
      ({Spilosoma Virginica}).

   {Woolly butt} (Bot.), an Australian tree ({Eucalyptus
      longifolia}), so named because of its fibrous bark.

   {Woolly louse} (Zo["o]l.), a plant louse ({Schizoneura, or
      Erisoma, lanigera}) which is often very injurious to the
      apple tree. It is covered with a dense coat of white
      filaments somewhat resembling fine wool or cotton. In
      exists in two forms, one of which infests the roots, the
      other the branches. See Illust. under {Blight}.

   {Woolly macaco} (Zo["o]l.), the mongoose lemur.

   {Woolly maki} (Zo["o]l.), a long-tailed lemur ({Indris
      laniger}) native of Madagascar, having fur somewhat like
      wool; -- called also {avahi}, and {woolly lemur}.

   {Woolly monkey} (Zo["o]l.), any South American monkey of the
      genus {Lagothrix}, as the caparro.

   {Woolly rhinoceros} (Paleon.), an extinct rhinoceros
      ({Rhinoceros tichorhinus}) which inhabited the arctic
      regions, and was covered with a dense coat of woolly hair.
      It has been found frozen in the ice of Siberia, with the
      flesh and hair well preserved.

Source : WordNet®

woolly
     adj 1: having a fluffy character or appearance [syn: {flocculent},
            {wooly}]
     2: confused and vague; used especially of thinking;
        "muddleheaded ideas"; "your addled little brain"; "woolly
        thinking"; "woolly-headed ideas" [syn: {addled}, {befuddled},
         {muddled}, {muzzy}, {wooly}, {woolly-headed}, {wooly-minded}]
     3: covered with dense often matted or curly hairs; "woolly
        lambs" [syn: {wooly}]
     4: covered with dense cottony hairs or hairlike filaments; "the
        woolly aphid has a lanate coat resembling cotton" [syn: {lanate}]
     [also: {woolliest}, {woollier}]