Hahaha, this is very charming!
I really like the concept and theme. The art is incredibly cute and consistent, as well as striking good chord with the music and SFX. Overall, super cohesive and with a good mood.
One small suggestion that I have is to flip the character sprite when they turn left or right when moving. Right now they just face left the whole time and it's obviously not a huge deal, but it's a small change that could add a lot in the long run.
I also felt like the enemies attacked VERY quickly and sometimes jumped out of nowhere. Perhaps this was intentional, but considering that it took so long for me to retrieve my needle to attack, I wish that they either had more of a lead-up to the attack or that I had more cover to hide behind in preparation for my own.
I did really love the grapple hook mechanics of the needle. That was super clever and cute, very well done! I think that you can expand it even more and have the player use it to climb walls, solve puzzles, etc. So cool!