Studio Donegal is based in the Glebe Mill at the bottom of the main street in the village where they have been designing, hand-weaving and garment making since 1979. Owned and operated by the Donaghy family, Studio Donegal remains true to its original objective of maintaining the traditional craft of hand-weaving which was in danger of being lost due to the introduction of machine weaving in the 1960s.

Each of their products are 100% Irish being individually hand-woven using wool, a fantastically sustainable material, sourced in the form of yarn spun by another local Kilcar company, Donegal Yarns. Visitors to their mill shop are welcome to take an informal tour of the works, meet the team and see the products being made. All products bearing the Studio Donegal label are hand woven and made in the mill in Kilcar.