The competition organised by local MP Mark Lancaster closed in mid-January with almost 600 votes cast.
The Wool Shop took the title by just two votes ahead of No. 38 Vintage Emporium, which received 107 votes.
The Wool Shop describes itself as a “mainly a brick and mortar yarn shop” they stock a good variety of yarns, patterns, books and tools for knitting and crochet.
Mr Lancaster said the competition was an opportunity for shoppers to appreciate the individuality, the level of personal service and sense of community on offer on Newport Pagnell’s high street.
It is also important not to forget the role the high street plays in generating jobs and boosting the local economy, he added.
“I love what I do and obviously my customers love what I do too,” she said.
Mr Lancaster said: “Congratulations to the Wool Shop, it clearly has a special place in the hearts of Newport Pagnell’s residents and the wider community as its one of the last wool shops for miles around.”