Felt Gift Tags You Can Reuse, Plus a Stitched Gift Envelope
Sew reusable felt gift tags with a back pocket for a replaceable paper name slip, decorate them with shapes and stitches instead of lettering, and make a matching envelope for a gift card.
Project kit
Materials
- Wool-blend or craft felt in 2 or 3 colors
- Embroidery floss in a contrast color
- Embroidery needle and pins
- Thin cord, twine or narrow ribbon
- Small buttons (optional)
- Scissors, ruler and disappearing fabric pen
- Paper and pencil
Paper tags are torn off and thrown away with the wrapping. Felt gift tags get untied, kept in a drawer and tied onto the next present, sometimes by the person who received them. That only works if the tag carries no fixed name or date, so the designs here are decorated entirely with shapes, stitches and buttons.
The name still has to go somewhere. Each tag has a small pocket on the back that holds a paper slip, which is replaced every time the tag is reused. A matching stitched envelope, sized for a gift card or a folded note, uses the same skills on a slightly larger rectangle.
What You Need
- Wool-blend or craft felt in two or three colors
- Embroidery floss in a contrasting color
- An embroidery needle and a few pins
- Thin cord, baker’s twine or narrow ribbon, about 10 in (25 cm) per tag
- Small buttons (optional)
- Scissors, a ruler, a disappearing fabric pen
- Paper and a pencil for templates and name slips

Draw and Cut the Tag Pieces
On paper, rule a rectangle 2 x 3 1/2 in (5 x 9 cm). On one short end, mark 1/2 in (1.3 cm) in from each corner along the top edge and 1/2 in (1.3 cm) down each side, join the marks and cut off the two small triangles. That gives the classic luggage-tag outline.
For each tag, cut:
- Two tag shapes, a front and a back
- One pocket rectangle, 2 x 1 3/4 in (5 x 4.5 cm)
- One small decoration, no wider than 1 1/4 in (3 cm): a heart from folded paper, a star, a triangle tree or a circle traced around a coin
Cutting the front and back from different colors gives a tag with two faces, which helps when it has to suit different wrapping papers.
How to Make Felt Gift Tags
- Decorate the front. Pin the small shape to the lower two-thirds of the front piece and stitch it down with a running stitch just inside its edge. This is the simplest form of felt applique, and it is easier on a single layer than on a finished tag.
- Add stitched detail. A French knot at the center of a star, three straight stitches fanning out from a heart, or a button sewn to the middle of a circle all add interest without any lettering.
- Place the pocket on the back. Lay the pocket rectangle on the back piece with its bottom and side edges level with the tag’s edges. Pin it. It will be caught in the outer seam, so it needs no stitching yet.
- Make the hanging loop. Fold the cord in half and knot the two cut ends together. Place the knot on the back piece just below the trimmed corners, with the loop extending past the top edge.
- Stack and pin. Set the front on top, decoration facing up, with all the edges matching and the cord knot trapped inside.
- Stitch around the edge. With two strands of floss, work a running stitch about 1/8 in (3 mm) in from the edge, through every layer. Along the pocket’s sides and bottom the needle passes through three layers. Take two stitches over the cord at the top to lock it in.
- Finish. End with a small knot hidden between the layers and trim the tail. Cut a paper slip 1 1/2 x 2 1/2 in (4 x 6.5 cm), write the name on it and slide it into the pocket.
If the running stitch still feels uneven, the spacing and knot-hiding methods in the guide to hand sewing felt are worth a short practice on scraps first.

Decorating Without Text
Because shapes and stitches replace words, think in simple symbols. A few combinations that read clearly at a small size:
| Occasion | Shape | Stitched or button detail |
|---|---|---|
| Birthday | Star or circle | Scattered French knots like confetti |
| Winter holidays | Triangle tree or snowflake | A button at the top of the tree |
| Thank you | Leaf or flower | Backstitched vein or knotted center |
| Any time | Heart | Running-stitch border in a contrast color |
Limit each tag to one shape and one kind of detail. Small surfaces look cluttered quickly.
A Stitched Felt Gift Envelope
A standard gift card is about 3 3/8 x 2 1/8 in (8.5 x 5.4 cm), and this envelope leaves a little room around it.
- Cut one rectangle. Rule and cut a piece of felt 4 x 6 1/2 in (10 x 16.5 cm).
- Shape the flap. At one short end, mark the center of the edge. Mark 1 1/2 in (4 cm) down each long side. Cut from the center mark to each side mark, leaving a pointed flap.
- Fold the pocket. Fold the straight short end up by 2 1/2 in (6.5 cm). Its edge should meet the base of the pointed flap. Pin both sides.
- Sew the side seams. Stitch each side from the fold to the pocket opening, 1/8 in (3 mm) in from the edge, and make two extra stitches at the opening, where the seam takes the most strain.
- Add a closure. Sew a small button to the pocket front, fold the flap down and cut a slit in the point just wide enough for the button. Felt does not fray, so the slit needs no binding.

For a no-button version, skip the slit and wrap a length of cord twice around the closed envelope, tying it in a bow with a tag attached. The same fold-and-seam construction scales up into a full-size felt pouch.
Watch out
Buttons are small parts and a choking hazard. Leave them off tags and envelopes meant for gifts to children under 3, and use stitched details instead.
Reusing and Storing Tags
Untie the cord loop instead of cutting it, and the tag is ready for its next use with a fresh paper slip. Keep a batch flat in an envelope or small box with the cords wrapped loosely around each tag so they do not tangle. If a tag picks up lint or glitter from wrapping, lift it off with a piece of tape.
A set of six tags in mixed shapes, tied in a stack, also makes a small present in its own right; the roundup of felt gift ideas has more projects that can be made ahead in batches.
Frequently asked questions
How do you put a name on a reusable felt gift tag?
Write it on a paper slip and slide the slip into a small felt pocket stitched to the back of the tag. The slip is replaced each time the tag is reused.
Do felt gift tags need a hole for the string?
No. A knotted loop of cord can be trapped between the front and back layers and stitched over, which is stronger than a hole cut near the edge.
Can felt gift tags be made without sewing?
Yes, the layers and decoration can be joined with tacky craft glue or fabric glue applied thinly. Leave the top of the back pocket unglued so the paper slip still fits.
What size felt envelope fits a gift card?
A felt rectangle 4 x 6 1/2 in (10 x 16.5 cm), folded up 2 1/2 in (6.5 cm) with a pointed flap, holds a standard gift card with a little room to spare.
