How to Make Personalized Fabric Christmas Gift Tags

Posted by Stephanie Chan
Learn how to use transfer paper and fabric to create unique, personalized fabric Christmas gift tags that can double as ornaments!

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I love to make my gift's packaging as fun as the gift itself. These personalized fabric gift tags will add thoughtfulness to your gift, plus can double as a keepsake ornament to be cherished for years to come. I've created a few different versions, including a gift card holder.

Here's What You'll Need

C&T Publishing Transfer Artist Paper

Image editing software (such as

Inkjet color printer

White or natural cotton fabric

Pinking Shears

Iron and ironing board


Sewing machine


Fabric scraps (holiday-themed, burlap, etc)

Heat n Bond Lite Iron-on Adhesive



Needle and thread

Anti-fraying glue

Baker's twine

Let's Get Crafty!

First, create your image in photo editing software, such as Picmonkey is free (some features require a paid subscription, but the free features are more than enough to create your designs.) Picmonkey is used to edit photos, but they have fonts as well as overlays that you can use on a plain canvas to create your images. To begin, click on Design, then choose a size for your canvas. I usually start with 5x7, and you can trim it down if necessary. A canvas that is in portrait orientation will appear; you can click Rotate to change it to landscape.

Now you can explore the overlays and find the shapes you'd like to use. The Butterfly has basic shapes as well as lots of other shapes, and the seasonal shapes are currently in the Black Cat (but this may change to a snowflake later!). I clicked on the black cat to find the holiday overlays (Santa Land and Winter Land).

I clicked on Reindeer under Santa Land, and chose one of the reindeer shapes. I just clicked on it and dragged a corner to resize it. Then, I went to the Butterfly (where the non-seasonal overlays are), and chose a circle. I turned it red, and voila, we now have Rudolph!

My image was simple to put together, so now it's time for the text. Click on the Tt to find your fonts. I'm making this tag for my mom, so I chose a scripty font. Now that I'm done, I'll save my image and work on the other two. The hipster snowman is for my nephew, and the other is a simple "Merry Christmas" that can be used for anything.

Because we're doing image transfer, we will have to print out the mirror image of our designs. So go back to the "Crop" symbol where you find all the basic edits, and click Rotate. Click on the double arrow going sideways, and this will flip your image. Save this image to your computer.

Insert your flipped images into a Word document, and resize them. Then, print them out on regular paper first, to test the size. When you're happy with the size, take your Transfer Artist Paper. You'll see there is a grayish purplish side, and white side. The white side is the top; you'll want to print on that side. Insert the Transfer Artist Paper into your printer and print!

After you've printed out your mirror images onto the Transfer Artist paper, cut out the images, close but not too close to their outline.

Place your images face down onto your white fabric. Fuse the images to your fabric according to the directions on the package.

Be sure to space the images out a little bit so you can cut around them. I used pinking shears to cut a rectangle/square around mine.

For the gift tags, cut out some fabric scraps slightly larger than the images. You can layer one piece of fabric, or two. For the reindeer, I layered a piece of Christmas fabric over a scrap of burlap. For the Merry Christmas tag, I fused two different pieces of sort of Christmas-y fabric and fused them together with iron-on adhesive to create a double-sided tag. For the gift card holder, I cut a 4x11-inch piece of felt, which I folded into an envelope. I centered the snowman image onto the back of the envelope.

For the gift tags, I simply stitched the image piece onto the fabric scraps.

To assemble to gift card holder, I first sewed the image to the back of the envelope (with the felt piece fully unfolded). Then,I folded the felt to form the envelope, with the envelope flap open. I started at the opening of the envelope on one side, stitching all the way around, to close the flaps. I also stitched around the flap.

To form the button hole (which also serves as a place to tie the twine), I cut two slits in the middle of the envelope flap by folding the flap in half and snipping about half an inch with my scissors. Then, thread baker's twine through the slits.

Sew on a button, insert a gift card, and close the envelope.

Cut a slit into your tags in a similar fashion (you'll have to cut onto the fabric, not the burlap, for the burlap tag). Unlike felt, the cotton fabric might fray over time, so apply a bit of anti-fraying glue to the slit. Then, thread through your baker's twine. All done!

I've wrapped my reindeer tag around my DIY Fat Quarter Placemats as a gift for my mom, and my Merry Christmas tag is tied around a mason jar filled with my husband's favorite peppermints. All of these tags can be hung on the tree or elsewhere in the house, and your recipient will think of you and your creativity all season long!