A star effect can be simply be created by projecting a star gobo, while superimposed rotating gobos will produce twinkling stars.
A star drop can be produced by stringing hundreds of tiny Christmas tree lights on a black velvet backdrop. A scrim in front of the backdrop will add depth and give an illusion of a slight twinkle. Twinkling can also be very effective when the lights are arranged in several circuits which pulsate gently.
Spectacular star effects can be created with optical fibers.