Textiles enhanced with thin-film flexible sensors are well-suited for unobtrusive monitoring of skin parameters due to the sensors’ high conformability. These sensors can be damaged if they are attached to the surface of the textile, also affecting the textiles’ aesthetics and feel. We investigate the effect of embedding flexible temperature sensors within textile yarns, which adds a layer of protection to the sensor. Industrial yarn manufacturing techniques including knit braiding, braiding, and double covering were utilised to identify an appropriate incorporation technique. The thermal time constants recorded by all three sensing yarns was <10 s. Simultaneously, effective sensitivity only decreased by a maximum of 14% compared to the uncovered sensor. This is due to the sensor being positioned within the yarn instead of being in direct contact with the measured surface. These sensor yarns were not affected by bending and produced repeatable measurements. The double covering method was observed to have the least impact on the sensors’ performance due to the yarn’s smaller dimensions. Finally, a sensing yarn was incorporated in an armband and used to measure changes in skin temperature. The demonstrated textile integration techniques for flexible sensors using industrial yarn manufacturing processes enable large-scale smart textile fabrication.