Wool
noun, の adjective
A sheep's fur is wool.
This is a jukugo word, which usually means on'yomi readings from the kanji. If you know the readings of your kanji you'll know how to read this as well.
クリスマスプレゼントに、羊毛のブランケットをもらいました。
I got a wool blanket as a Christmas present.
羊毛はふわふわです。
Wool is fluffy.
えっ、このブラ、羊毛で出来てるんですか？
What, this bra is made out of wool?