Abstract: A yarn management system for storing, managing and transporting yarn and in-progress work pieces including a storage device or knitting bag sized to accommodate a variety of projects, for example, a full-sized project bag configured to hold multiple skeins of yarn and the associated in-progress work piece. The storage device is configured to protect the yarn and the work piece while allowing the user to periodically remove and work on the work piece, for example, to knit tangle free with multiple skeins of yarn. The storage device or bag includes an interior compartment having at least one of a divider panel which creates a first and a second storage compartment. The divider panel further includes a plurality of guide apertures through which yarn can pass from the first storage compartment to the second storage compartment.