Making Fabric Letter Tags is the perfect way to use up leftover fabric scraps. These tags are easy to make and you can customize them with your favorite prints and color palette. The handmade tags can be used for wrapping a gift for a friend or loved one and they can also be used as a way to personalize party favors with the first initial of your guests.

Materials: White printer paper, plain gift tags, fabric scraps, printed letter template, iron-on adhesive (I recommend Heat n Bond), scissors, iron, ironing board, twine

Step 1: Print letters onto white printer paper (flip them horizontally when printing).
Step 2: Trace letters onto a piece of iron-on adhesive.
Step 3: Remove backing from iron-on adhesive. Place the adhesive letter, sticky side down onto the the wrong-side of a fabric scrap. Use iron on medium-high heat to adhere adhesive letter to fabric.
Step 4: Cut out the letter using scissors.
Step 5: Peel off backing and place on the gift tag. Use iron on low heat and iron the fabric letter onto the gift tag.
Step 6: Secure gift tag onto gift or party favor using a piece of twine.