A method of making a pile fabric that closely resembles natural sheepskin fleece, that includes forming a yarn made with wool fibers and non-wool fibers and knitting the yarn to form a pile fabric and knitting a scrim to form a base, while simultaneously knitting the yarn and the scrim together, where the yarn is attached to and extends from the scrim to form a length of pile fabric having a fiber side with natural wool fibers and non-wool fibers and the scrim on an opposing side. The method includes finishing the pile fabric as natural sheepskin, including, polishing the fiber side of the pile fabric, and cutting the wool fibers to a designated length.