The Collaborative International Dictionary of English v.0.48:

Needlework \Nee"dle*work`\, n.
   1. Work executed with a needle; sewed work; sewing;
      embroidery, crocheting, quilting, or tapestry, etc.; also,
      the art, process, or occupation of creating objects with
      needles.

   Syn: needlecraft.
        [1913 Webster +PJC]

   2. The combination of timber and plaster making the outside
      framework of some houses.
      [1913 Webster]

WordNet (r) 3.0 (2006):

needlework
    n 1: a creation created or assembled by needle and thread [syn:
         needlework, needlecraft]
    2: work (such as sewing or embroidery) that is done with a
       needle [syn: needlework, needlecraft]

Moby Thesaurus II by Grady Ward, 1.0:

20 Moby Thesaurus words for "needlework":
   applique, basting, binding, buttonholing, crochet, embroidery,
   fancywork, garment making, knitting, macrame, needlepoint, netting,
   petit point, quilting, ribbing, sewing, stitchery, stitching,
   suture, tatting