Conducting polypyrrole (PPy) coated wool yarns were prepared by a continuous vapour polymerization technique, using a speed of 1 m/min with different iron(III) chloride (FeCl3) as the oxidant at different concentrations. The resistivities, tensile properties, longitudinal and cross-sectional views of PPy-coated wool yarns were investigated. Optimum specific electrical resistances of 2.96 Ω g/cm2 at 80 g/L FeCl3 and 1.69 Ω g/cm2 at 70 g/L FeCl3 were obtained for 500 and 400 twist per meter (TPM) yarns, respectively. PPy-coated wool yarns exhibited higher elongation than uncoated yarns. Longitudinal and cross-sectional views of the yarns indicate that PPy coating penetrated deep into the yarn cross-section and a uniform coating was obtained on the surface of the yarn surface.