A yarn monitoring system for textile machine uses sensors to indicate yarn over tensioning and breakage. The sensors are contained within, or adjacent to, eyelets and monitor, sending signals to the controller, the speed of the yarn. The eyelets, each with a sensor, are within a body that also contains a circuit board which is in constant communication with the eyelets and software contained within a controller. The controller, in turn, is in constant communication with the textile machine. The software is preprogrammed by a user with an acceptable signal range for passage of the yarn past the sensors and a predetermined time period for the signal to remain outside the acceptable signal range. To prevent unnecessary shut down of the textile machine, the software averages the signal and, when the averaged signal remains out of the acceptable signal range for the preprogrammed time initiates communication to the textile machine.