Abstract: A punch embroidering tool for inserting yarn through fabric and forming loops of yarn includes a hollow needle of the type used in hypodermic syringes, modified by punching a transverse hole through the needle adjacent to the point of the needle, for receiving the end of a yarn strand. The base of the needle is press-fitted into a hollow cylindrical needle support tube having a longitudinally disposed bore communicating with the needle bore. The outer cylindrical wall surface of the needle support tube is provided with a plurality of longitudinally spaced apart, annular grooves, and fits longitudinally slidably with a hollow cylindrical housing. A bushing having one or more pairs of slots extending longitudinally forward from its rear transverse annular end wall fits slidably over the grooved portion of the needle support tube, coaxially within the housing.