While somewhat coarse, megasloth wool's long fibers make it very strong. It is very warm.
Megasloth wool is a type of fabric gathered by animal handlers by shearing tamed megasloth. Megasloth wool is the second warmest textile in the game, after Guinea pig fur and tied with Thrumbofur, and is essential for colonies on cold biomes like sea ice and ice sheet. It can be hard to obtain lots of it as it takes quite a while for megasloth's to produce the wool (usually only enough to make one parka) and it is rarely sold by traders.
Megasloth wool is unique among wools in that is actually moderately protective, offering the 17th highest sharp armor of any textile but only slightly less protective than comparable to plainleather, the 11th highest. In addition, it excels in cold insulation like all wools, offering the 2nd best cold insulation of any textile in the game, tied with the significantly rarer thrumbofur, and beaten only by the less protective guinea pig fur. In comparison, its heat insulation is lacking at 19th of all textiles.
Despite its higher armor, it is still largely irrelevant as protective clothing after the very early game. Additionally, its poor heat insulation make it unattractive in hot biomes, except where bulk textiles of any sort are the primary requirement. However its moderate protection and exceptional cold insulation make it very useful in cold biomes. Its ease of production and excellent insulation can make megasloth wool parkas or skin-layer apparel an easy way to provide winter clothing to a colony, and very likely are sufficient by themselves to provide the necessary insulation without affecting other, more protective parts of a pawn's outfit. Compared to other wools, which largely fill the same niche megasloth wool it is the best. Though harder to keep tame and fed, Megasloths having the fastest Per Day production rate and the wool has the best cold insulation - if any wool is being used it is likely because of that cold insulation. Thus megasloth wool advantages its primary use case heavily.
For use in furniture, it only has a somewhat improved beauty factor over other common textiles, but its rapid redundancy as clothing, the ease of acquisition, and modest but not insignificant value makes it a solid choice for improving furniture beauty and providing bulk textiles for construction. As megasloths are the fastest wool producers, if they can be acquired and maintained, they are ideal for this bulk production. If they cannot, the fast production rates of sheep of alpaca wool or the lack of a tame maintenance requirement for sheep may be more advantageous. Care should be taken however as, like other wools in RimWorld, it is exceptionally flammable.