Abstract: The machine comprises plural forming units each operable to produce two chenille yarns each formed by two binding yarns twisted together to bind short sheared lengths of an "effect" or "fancy" yarn. Each forming unit has, associated therewith, a pair of spindles mounted for rotation about substantially vertical axes and each operable to wind one of the formed chenille yarns thereon. Two pairs of binding yarn supplies are provided for forming each pair of chenille yarns, one pair of binding yarn supplies feeding from above and the other pair of binding yarn supplies feeding from below. Each unit includes a respective motor-driven control shaft in driving relation with the forming unit and with the associated wind-up spindles, and a rotary bell having an axial passage through which an effect yarn is fed formed with two eccentric guide bushes extending therethrough through which yarn is led.