Gather your materials to create the beard hat; you need scissors, a sewing machine, crochet hooks and two types of colored yarn for the hat. You can choose a natural hair-color yarn for the beard portion of the hat.
To create a hat, start the first row with six half double crochets in a circle. Once done, decide on the increase rows, which can range from two to nine depending on how large you want the hat. Depending on the recipient, make the hat roughly the size of a head's crown. Place a stitch marker after the last increase row to help mark the row and know where to start your next.
For the second row, make an increase stitch into the top of every half double crochet from row one. For the third, half double crochet to the next stitch and then two half double crochet into the next. Repeat this five times to have a total of 18 stitches. From here on, HDC into the previous several stitches with every row, and repeat five times, until your hat is complete.
To crochet the beard, start with a slip knot, and double crochet into the fourth chain from the hook. Double crochet the remaining ten chain stitches across, and double crochet in every stitch to equal 11 double crochet stitches. Sew the mustache the same way, and then sew the beard to the hat to complete.