The Collaborative International Dictionary of English v.0.48:

Fancywork \Fan"cy*work`\, n.
   Ornamental work with a needle or hook, as embroidery,
   crocheting, netting, etc.
   [1913 Webster]

WordNet (r) 3.0 (2006):

fancywork
    n 1: decorative needlework [syn: embroidery, fancywork]