To provide a yarn-holding apparatus of a flat knitting machine free from adverse effect due to yarn waste and capable of surely operating by a simple constitution.

This yarn holding apparatus is fitted in a flat knitting machine having knitting yarn 10 continuing to knit fabric knitted from a yarn feed port which is in a waiting position and a cutter for cutting the knitting yarn 10 and disposed on waiting position A side of the yarn feed port closer than the cutter along the knitting yarn 10. The yarn holding apparatus has levers 12 and 13 having a hook part 15, whose top part is rockably arranged in vertical direction and engaging the knitting yarn 10 at the top part, a driving member 30 such as motor installed on the base end side of the levers 12 and 13 and oscillating these levers 12 and 13 and a guide member 18 positioning the knitting yarn 10 to the lower direction of the hook part 15 and a fixing and a holding member 32 holding the knitting yarn 10 engaging with the hook part 15 between hook part 15 in lowering of the hook part 15 and holding the knitting yarn 10 so as not to cause separation also after cutting the knitting yarn 10.