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Make Easy Felt Gift Tags

Easy Felt Gift Tags - a free tutorial from Shiny Happy World

Four years ago I posted a tutorial showing how I make reusable fabric gift bags. We don’t use any gift wrap anymore at the holidays – just these bags.

This was a really popular tutorial and people loved the bags – but I had a lot of people ask how we stuck tags to them.

I’m finally getting around to that post!

For a while we just used paper tags tucked into the ribbon – but that didn’t always stay in place, so a couple of years ago I made a bunch of felt tags and they’ve been AWESOME.

First – a note. Mine is a small family – just three of us – and we all have different initials. So for us it worked really well to just have tags with a first initial. You may need to adapt the idea a bit to work for YOUR family, but the basic technique can be used a lot of ways. 🙂

First cut a 3 inch square of felt.

Why 3 inches? It’s a number that allows me to get 12 squares out of a single sheet of felt with no waste. 🙂

Cut out the felt letter you need. I used this free alphabet pattern.

It’s easy to cut shapes like those letters if you use freezer paper.

  1. Trace the letter onto the paper side of the freezer paper
  2. Fuse the shiny side of the paper to the felt.
  3. Cut out the letter – cutting through the felt and the paper at the same time for super accuracy
  4. Peel off the paper and use it again.

Stick the letter to the felt square with a dab of glue stick. Sew around the letter using a simple straight stitch on your sewing machine. You could also hand sew the letter in place using fancier stitches, but I wanted to make a big stack of these in an afternoon. (Keep reading for a no-sew option.)

Cut a slit in the felt on each side of the letter.

Easy Felt Gift Tags - a free tutorial from Shiny Happy World

I don’t measure these or worry too much about precision – most of the slits are about an inch tall, and roughly half an inch from the edge of the felt.


Now – here’s how I use them.

I make two kinds of bags. The main kind – the ones I use most often – have the ribbon sewn to the top edge of the bag. They’re designed for the ribbon to wrap all the way around the gift, like this. . .

Fabric Gift Bags - free tutorial from Shiny Happy World

For those I just slide the tag onto the ribbon anywhere on the front of the package. It looks like this. . .

Easy Felt Gift Tags - a free tutorial from Shiny Happy World

This is a gift for Jo. 🙂

The other kind of bag I make has the ribbon sewn into a side seam near the top of the bag. Those bags are meant to gather up at the top like a classic Santa sack, with the ribbon tied around the neck of the bag – not the gift itself.

For those I thread the tag onto one of the loops before I finish tying the bow. Here’s what it looks like.

Easy Felt Gift Tags - a free tutorial from Shiny Happy World

Another gift for Jo! 🙂

Both ways are super easy, and post-gift-opening cleanup is a breeze. The ribbons are attached to the bags, so I just fold up the bags, and make a little stack of the tags. The bags and the tags all fit in one small plastic tub – maybe the size of two shoe-boxes. 🙂

Here are links to everything you need. . .

I like the way the stitching looks, but you could make a completely no-sew version using Heat & Bond Ultrahold fusible adhesive. Remember – this is the heaviest weight they make and you should NOT sew through it. (It will gunk up your needle.) If you use this option, you’ll need to fuse a little hotter/longer than the package directions say in order for the heat to fully penetrate the thick felt and melt the adhesive. Everyone’s iron is a little different, so just experiment with temperature and time until you get a solid fuse.

Happy crafting!

Wendi Gratz from Shiny Happy World


  1. Sharlene B SAYS...

    I have made many of those bags and rarely use paper anymore. Thanks for the tag tutorial to go along with them.