Lost Art Yarn is a wonderful yarn shop located right on Front Street in downtown Traverse City. They carry a wonderful selection of yarns with an emphasis on higher quality yarns (which does translate to higher prices than what you might pay at a big box store however that is due to the quality of the yarn). They also have a nice selection of pattern books and needles and other supplies. The only drawback is that there isn't great parking in this area of downtown so if you're only coming down for this store you might have to drive around. However, if you're already planning to be downtown, this store is a treasure for knitters and crotchet lovers!
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