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A Power Badge is a powerup useable pre-level in Yoshi's Woolly World. They aid Yoshi in different ways, like making Yoshi's ground-pound stronger or becoming immune to fire or lava. Before a level starts, the game prompts the player to select a Power Badge. They work for one level and then must be bought again. The player can exchange Beads for Power Badges.
List of Power Badges
| Image | Name | Cost | Badge Effect | Unlocked After |
|---|---|---|---|---|
 |
Clear the course! | 2000 | Allows Yoshi to skip the course. (This badge can only be used in Mellow Mode.) | World 1-1 |
 |
Make all Yarn Balls big! | 1000 | Makes all of the Yarn Balls large for one level. | World 1-2 |
 |
Fall into a pit? No problem! | 7500 | Causes the player to bounce out of bottomless pits if he/she falls into one. | World 1-4 |
 |
Power up Ground Pound! | 5000 | Causes ground pounds to release a shockwave, defeating all on-screen enemies. (Has no effect on bosses.) | World 1-6 |
 |
All-you-can-eat watermelon! | 5000 | Gives the player infinite watermelons for one level. | World 1-8 |
 |
Immunity to fire and lava! | 7500 | Makes the player invincible to fire and bounce off of lava. | World 2-4 |
 |
Play alongside Poochy! | 500 | Causes Poochy to appear in the course this badge is used in. | World 2-5 |
 |
Higher defense! | 3000 | Makes the player lose three hearts instead of five when taking damage. | World 2-8 |
 |
See hidden items! | 5000 | Causes invisible Winged Clouds to appear when Yoshi is near them, makes beads containing Stamp Patches glow when visible, and makes hidden areas flash when they are on-screen. | World 3-4 |
 |
Grab items with Yoshi's tongue! | 3000 | Allows Yoshi to grab beads, Smiley Flowers, Wonder Wool, Stamp Patches, and Hearts with his tongue. | World 3-8 |
| Improve your speed! | 3000 | ??? | World 4-4 |