The interactive knitting and crocheting system includes at least one crocheting or knitting needle with a motion-based sensing capability integrated therein and a computing means. The computing means monitors movement of the respective needle to monitor proper crocheting or knitting technique, and upon detection of improper technique will provide an alert that an error has occurred, which shall prevent waste in work. The computing means provides notice of improper technique in the form of an audiovisual means, which can double as an instructional aid in teaching how to crochet or knit. The computing means also provides progress as to the stitch and pattern formed.