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To create a library using IAR Embedded workbench, follow these steps:

1. Open the IAR Embedded Workbench software and create a new project
2. Select the appropriate target device and choose "Library" as project type
3. Choose the programming language you want to use and click "OK"
4. In the "Project Configuration" window, select "Library Configuration" from the drop-down menu
5. Choose the appropriate library type (e.g. static or dynamic)
6. Add the source files you want to include in the library to the project
7. Build the library by clicking "Build" in the toolbar or pressing F7
8. The library file will be generated in the output folder of the project

You can then use this library in other projects by linking it with the appropriate linker flags.