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In the 2004 film, The Village, the villagers wear yellow as a "safe" color to protect themselves against the creatures that live in the woods beyond the borders of their village. The color yellow is to show the creatures that the villagers mean them no harm and that peace is to be maintained between them.

Ivy Walker (who is blind) needs to breach the borders and go into the woods. It is revealed to her by her father that the creatures actually do not exist, but they were simply used as a scare tactic to prevent the villagers from venturing into the woods and going to "the towns."

Ivy still wears her yellow cloak. She falls into a hole and gets her yellow cloak covered with mud. Realizing that something is following her, she gets extremely nervous and frantically tries to wipe the mud off of her cloak to reveal that she is wearing yellow.

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If Ivy knew that the creatures were not real, why was she trying to reveal the color of her cloak?

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    An automatic, irrational reaction? (disclaimer: I haven't seen the film) – Rand al'Thor May 3 '16 at 22:38
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The Yellow clothes are a type of 'Elder Endorsement', a ratification or 'pass'.

The village guardians who dress up as the beasts know that if someone is dressed in yellow they have been given the Yellow cloak under the supervision of a village elder, so it is a sanctioned activity.

If someone is found wandering without one, it will be assumed they're not supposed to be there. It's unlikely the 'beasts' would harm her, but they'd certainly interfere and try and scare her off/back to the village. Ivy possibly doesn't know what they're capable of.

Of course, Ivy could at this point tell them she knows they're not really beasts and knows what they're doing, but within the narrative of the film her maintaining her cloak's yellow lustre removes that possibility.

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    It seems reasonable that even though Ivy has intellectual, logical reasons for no longer fearing the monsters, that might be very little benefit when set against her lifetime of emotional, irrational fear of them. – Todd Wilcox May 4 '16 at 15:39

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