Etymology
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worsted (n.)

woolen fabric made from twisted yarn, late 13c., from Worstead (Old English Wurðestede), town in Norfolk where the cloth originally was made.

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Definitions of worsted

worsted (n.)
a woolen fabric with a hard textured surface and no nap; woven of worsted yarns "he wore a worsted suit";
worsted (n.)
a tightly twisted woolen yarn spun from long-staple wool;
Synonyms: worsted yarn
From wordnet.princeton.edu