Source : Webster's Revised Unabridged Dictionary (1913)

Yarn \Yarn\, n. [OE. yarn, [yogh]arn, AS. gearn; akin to D.
   garen, G., OHG., Icel., Sw., & Dan. garn; of uncertain
   origin. Cf. {Cord}.]
   1. Spun wool; woolen thread; also, thread of other material,
      as of cotton, flax, hemp, or silk; material spun and
      prepared for use in weaving, knitting, manufacturing
      sewing thread, or the like.

   2. (Rope Making) One of the threads of which the strands of a
      rope are composed.

   3. A story told by a sailor for the amusement of his
      companions; a story or tale; as, to spin a yarn. [Colloq.]

Source : WordNet®

yarn
     v : tell or spin a yarn

yarn
     n 1: the act of giving an account describing incidents or a
          course of events; "his narration was hesitant" [syn: {narration},
           {recital}]
     2: a fine cord of twisted fibers (of cotton or silk or wool or
        nylon etc.) used in sewing and weaving [syn: {thread}]