Air-texturized dubbing yarn and method of tying a fishing fly using same

An air-texturized dubbing yarn is provided for use in tying the body portion of a fly fishing fly. The dubbing yarn is formed in an air texturizing machine and includes a core thread and one or more effect threads that are air-entangled through and frayed about the core thread to present a fuzzy texture. The colors of the threads are selected to form a combined color scheme that mimics the natural colors of live flies. A method of tying a fly includes attaching one end of a length of air-texturized yarn to the shank of a hook and wrapping the yarn about the shank to form a fly body mimicking that of a live fly. Hackle and other materials may then be added to complete the fly.