Abstract: The present invention relates to thread storage and dispensing systems which protect the thread from damage. A spool system of the present invention includes a thread spool around which thread is wound. A spool cap is mounted to the thread spool in a manner which substantially encloses the thread. The spool cap may include an opening through which the thread is extended as it is fed into a sewing machine. The spool cap may be selectively and removably mounted to the thread spool in any of a variety of manners. For instance, detents may be provided on the cap to engage a corresponding groove in the thread spool. Optionally, a stopper is provided which may be inserted into the opening through which the thread is fed into a sewing machine. The stopper may frictionally engage the cap and thread, and secure the thread to prevent it from unraveling.