Yarn Market, Dunster fire in the Civil War. Nearby was an older cross known as the Butter Cross which has subsequently been moved to the outskirts of the village. The Yarn Market is an octagonal building constructed around a central pier. The tiled roof provides shelter from the rain. Dunster Castle stands on a site which has been fortified since the late Anglo-Saxon period, signifying the importance of the area. After the Norman conquest of England in the 11th century, William de Mohun constructed a timber castle on the site as part of the pacification of Somerset. A stone shell keep was built
Dunster mentioned in the Domesday Book of 1086. From that time it was the "caput" of the Feudal barony of Dunster. The Castle was remodelled on several occasions by the Luttrell family who were lords of the manor from the 14th to 20th centuries. The benedictine Dunster Priory was established in about 1100. The Priory Church of St George, dovecote and tithe barn are all relics from the Priory. The village became a centre for wool and cloth production and trade, of which the Yarn Market, built by George Luttrell (d.1629), is a relic. There existed formerly a harbour, known as