So this is what I have been working on recently, my first needle felt dragon.
Started out with a pipecleaner armature. Then put a bit of core wool round that for a basic shape before attaching the wings using the wires from the beaded parts wrapped round the front legs. More core wool to cover those wires and finish shaping. Also attached horns made from decopatch paper on wire to the head.
Colouring is white and purple merino wool. The purple has metallic threads in it. Used eyes with a wire loop from Heidifeathers and finished it off with some beads and embellishments like the dragons I used to draw.
Needle felting uses un-spun wool fibres, you stab it with a selection on needles until it becomes the shape you want. To give it more stability for legs and such you can make it onto wire armatures. Core wool is a cheaper type of wool that is easier to shape so often used to make the bulk of the shape saving the expensive wools for a top layer.