How to Knit a Shetland Lace Beanie Free Knitting Pattern

Last updated: 10 November 2025

Shetland Lace Beanie — Free Knitting Pattern

If you love a cosy, slouchy hat with a pretty lace texture, the Shetland Lace Beanie is a lovely project to knit. It uses a variation of the Old Shale stitch worked in the round and is designed to fit adults and older teens.

The beanie is worked from the bottom up and looks beautiful in an ombré yarn, but you can absolutely use a solid shade if you prefer.  Originally I used Caron Cakes to make this hat and this is a great choice for a more colourful, colour block effect. It’s designed to fit adults and older teens and only uses one ball of Paintbox Ombre Aran, so it’s a great quick project or gift knit.

Get the PDF!

If you prefer having everything neatly laid out and easy to print, you can also grab the PDF version of this pattern. The downloadable file includes the full instructions, clear formatting, and no ads, making it perfect for keeping in your project bag or marking up as you knit. 

Complete the Set

The Shetland Lace Beanie is part of a matching set, and if you enjoy this stitch pattern you might also like the coordinating scarf and gloves. Both patterns use the same gentle lace pattern, so the pieces look lovely worn together. The scarf has a beautiful drape and shows off the lace repeat really well, while the gloves compliment the hat and scarf beautifully.  They make a great gift set or a nice treat to knit for yourself.

Yarn Choice and Substitutes

For this updated version, I used Paintbox Yarns Ombre Aran Wool Touch in the shade Sandy Beach. It’s a beautifully soft yarn made with 75% acrylic and 25% wool, giving a cosy drape and easy care. Each 100g ball has around 190 metres, so it works up quickly too.

If you’d like to try something different, Sirdar Jewelspun Aran, Lion Brand Ferris Wheel, or Chroma Worsted are great alternatives that still give that lovely colour-shifting effect.

Materials

Needles: 5.00 mm & 4.00 mm dpn’s or long circular needles using the magic loop method.

Yarn: Paintbox Yarns Ombre Aran

Other items: Yarn needle, Scissors, Stitch marker

Abbreviations

k - knit

p - purl

k2tog - knit 2 together

k3tog - knit 3 together

yo - yarn over

st(s) stitch(s)

Size: Adult (ladies)

Gauge: 16 sts x 26 rows = 10 x 10 cm (4 x 4 inches) in pattern

Special Stitches

Cable cast on:

• Make a slipknot and place it on the left needle.
• Insert the right needle knitwise into this stitch, wrap the yarn and pull up a loop.
• Place the loop on the left needle.
• For all following stitches, insert the right needle between the last two stitches on the left needle.
• Wrap the yarn and pull up a loop.
• Place the new loop on the left needle.
• Repeat until the required number of stitches are cast on.

2 x 2 rib:

 [k2, p2] repeat around

Instructions

Pattern notes:

• Read the pattern all the way through before starting.
• We recommend using the cable cast on.
• This beanie is knitted in the round on double pointed needles or on a long circular needle with the magic loop method.
• The lace pattern is created by simple increases and decreases.

With 4mm needles cast on 100 sts and join in the round placing a stitch marker to denote the beginning of the round.

Rounds 1–14 2x2 rib

Change to 5mm needles and on the next round increase 8 sts evenly around by knitting into front and back of the st.

Round 15 knit. 108 sts.

Round 16 knit.

Round 17 [k2tog] 3 times, [yo, k1] 6 times, [k2tog] 6 times repeat from to 5 times, [yo, k1] 6 times, [k2tog] 3 times.

Round 18–20 knit.

Rounds 21–28 repeat rounds 17–20 twice.

Round 29 [k2tog] 3 times, k1 [yo, k1] 4 times, k1, [k2tog] 6 times repeat from to 5 times, k1 [yo, k1] 4 times, k1 [k2tog] 3 times. 96 sts.

Round 30–32 knit.

Round 33 [k2tog] twice, k2 [yo, k1] 4 times, k2, [k2tog] 4 times repeat from to 5 times, k2 [yo, k1] 4 times, k2, [k2tog] twice.

Rounds 34–36 knit.

Rounds 37–40 repeat rounds 33–36 once.

Round 41 [k2tog] 3 times, [yo, k1] 4 times, [k2tog] 6 times repeat from to 5 times, [yo, k1] 4 times, [k2tog] 3 times. 84 sts.

Rounds 42–44 knit.

Round 45 [k2tog] twice, k1, [yo, k1] 4 times, k1, [k2tog] 4 times repeat from to 5 times, k1, [yo, k1] 4 times, k1, [k2tog] twice.

Rounds 46–48 knit.

Round 49 k2tog, k3tog [yo, k1] 4 times, k3tog, [k2tog] twice, k3tog repeat from to 5 times [yo, k1] 4 times, k3tog, k2tog. 72 sts.

Rounds 50–52 knit.

Round 53 [k2tog] twice, [yo, k1] 4 times, [k2tog] 4 times repeat from to 5 times, [yo, k1] 4 times, [k2tog] twice.

Rounds 54–56 knit.

Round 57 [k2tog] twice, k1, [yo, k1] twice, k1, [k2tog] 4 times repeat from to 5 times, k1, [yo, k1] twice, k1, [k2tog] twice. 60 sts.

Rounds 58–60 knit.

Round 61 k2tog, k2, [yo, k1] twice, k2, [k2tog] twice repeat from to 5 times, k2, [yo, k1] twice, k2, k2tog.

Rounds 62–64 knit.

Round 65 & 66 k2tog around.

Cut yarn and thread onto darning needle, thread through remaining stitches and pull tight, secure and weave in ends.

Finishing

Blocking really helps the lace pattern open up and gives the beanie a smooth, professional finish. To block your hat, soak it in lukewarm water for about 15 minutes, then gently squeeze out the excess without wringing. Roll it in a towel to remove more moisture, then lay it flat on a blocking mat or a clean towel. Shape the crown and sides neatly, making sure the lace sits evenly. Leave it to dry completely before wearing.

Add a faux fur pom pom if desired.

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