Egyptian Barki sheep's wool was subjectively graded and sorted according to handle grade of harshness trait into three categories: soft wool (SW), medium wool (MW) and harsh wool (HW) in addition to the fourth category as a wool left without grading or sorting for comparison; non-sorted wool (NW). Each category was separately mechanically manufactured into woolen yarns of nominal count 6/2 metric. Representative samples of raw wool and yarns after spinning were taken from each category for characteristics measurements. Sorting system significantly affected (P<0.05) staple length and highly significant (P<0.01) affected staple crimps frequency, staple strength, loose wool bulk and resilience, fiber diameter, fine fibers percentage, coarse fibers percentage, hetero-type fibers percentage, kemp fibers percentage, medullated fibers percentage, medullation index and prickle factors. Sorting system had a highly significant (P<0.01) effects on yarn count, yarn twisting, yarn strength, yarn elongation, yarn tenacity, coefficient of variation of yarn mass (CVm%) and thin places. The differences in irregularity of the yarn mass (Um%) were significant (P<0.05). Correlations among wool traits and among yarn characteristics were estimated. The results indicated the importance of separating the soft handle wool part of Barki fleeces which may be used in apparel textiles blends. Such procedure will partially save foreign currency utilized to import fine wool, as well as increased the uniformity of the rest of fleeces and their suitability to carpet manufacture that required harsher wool fibers. Therefore, breeders' incomes will increase due to the increase in price of wool. This would result in increased the interest of sheep breeding and wool improvement.