It knits up just fine if you're careful, but it's thicker than worsted weight usually is, and needs more careful handling than commercially spun yarn. I've made yarn myself with a drop spindle, so I wasn't expecting tightly, evenly twisted yarn. But I was expecting something slightly more regular than what I got. I also needed more than I expected for the scarf I made, so order an extra skein if you have something specific in mind, or you might run out.
That being said, I found this particular yarn to be a bit difficult to work with. Silk has a tendency to be very slippery (I had to get those needle stopper plugs for my dps because my stitches kept falling off the ends) and because of the nature of silk as a fabric, it unravels constantly. It was hard to make sure I was catching all the little threads for each stitch, making knitting (for me) a slow process.
Because of the way this yarn is twisted (plied), you have to be careful which direction the yarn twists when you knit. After starting my little handbag project with this yarn, I had to frog it and re-wind my ball the opposite direction. The first time I started the bag, the yarn was constantly untwisting itself as I was knitting it, which lead to a lot of fraying and the yarn threatening to pull itself apart. After winding my ball the other direction, I still had to stop after every row to untwist it (it winds itself tighter after every stitch), but at least it wasn't untwisting to the point where my yarn was falling apart.
I'm not sure I will purchase this yarn again, but it did end up looking nice as a cute clutch-sized handbag. You can see it on my ravelry page here: http://ravel.me/mrsschomer/c1
PREMIUM SARI SILK HANDSPUN YARN; $15.50?