Incredible Needle Felted Shiranui from the game Okami by artist Piquipauparro of DeviantArt. This felt sculpture measures 12″ long and 8″ tall and is made of wool and a bit of wire for structure.

Softmachines are felt pillows and laptop sleeves in the form of electronic musical instruments.
(Source: thedailywh.at)

Kay Petal, from Wasilla, Alaska creates cute and amazing caricature dolls made out of Felt fabric. Kay is an active member of an online felting community called The Felting & Needle Felting Forum. If you like her stuff you can check out her Flickr and Youtube.