Free Knitting Pattern: Christmas Gift Bag You’ll Want to Make Every Year
There is something deeply satisfying about giving a handmade gift, but what about the wrapping? This year, skip the disposable paper and ribbons and knit up a set of beautiful Christmas gift bags instead. These charming little bags are reusable, eco-friendly, and honestly more impressive than whatever is tucked inside. They work up quickly, use only a small amount of yarn, and can be customized in dozens of ways to suit any recipient. Whether you are a seasoned knitter or someone who has just mastered the knit stitch, this free pattern is designed to be approachable, satisfying, and genuinely useful.
Below you will find everything you need: a full free knitting pattern for a classic Christmas gift bag, tips for customizing the design, ideas for embellishments, and guidance on how to adapt the size for different gifts. Bookmark this post, because once you knit one of these, you will want to make a whole stack of them.
Why Knit a Christmas Gift Bag?
Before we dive into the pattern itself, let’s talk about why a knitted gift bag is such a wonderful idea in the first place.
First, there is the sustainability angle. Wrapping paper and tissue paper create enormous amounts of waste during the holiday season. A knitted bag, on the other hand, becomes part of the gift. The recipient can use it as a small drawstring pouch, a project bag, a jewelry holder, or simply keep it as a memento of the thoughtfulness you put into the holiday.
Second, knitted bags are incredibly versatile. The simple drawstring design in this pattern can hold a candle, a small bottle of perfume, a bundle of chocolates, a pair of socks, a book, or a collection of bath products. You adjust the dimensions, and the bag becomes whatever you need it to be.
Third, and perhaps most importantly, knitting these bags is genuinely enjoyable. There are no complicated seams, no intimidating construction, and no need to read a chart if you don’t want to. The pattern below is written out entirely in plain text, so you can follow along stitch by stitch.
Materials You Will Need
This pattern is designed to be worked with materials you likely already have in your stash. Here is what you need to get started.
Yarn: Approximately 50 to 100 yards of worsted weight yarn, depending on the size of bag you want to make. Almost any fiber works well here. A smooth wool or wool-blend will give you the clearest stitch definition, but cotton, acrylic, and even a festive sparkle yarn all produce beautiful results. For a classic Christmas look, try deep red with green ribbon, forest green with gold ribbon, or a natural cream with cranberry ribbon.
Needles: US size 7 (4.5mm) double-pointed needles or a short circular needle for working in the round. You can also use the magic loop method if you prefer. If you are using a different yarn weight, adjust your needle size accordingly.
Other supplies: A tapestry needle for weaving in ends, a crochet hook or bodkin for threading the drawstring, scissors, and a length of ribbon or I-cord for the drawstring closure. Stitch markers are optional but helpful.
Gauge: Approximately 18 stitches and 24 rows over 4 inches in stockinette stitch. Gauge is not critical for this project, as the bag simply needs to be large enough to hold your gift. If your stitches are smaller or larger, your finished bag will simply be a slightly different size.
Pattern Notes
This bag is worked in the round from the bottom up. You will start with a closed bottom using a simple technique, work the body in the round, create a small eyelet row for the drawstring, and finish with a few rows of ribbing. The whole thing comes together in an evening or two, making it perfect for last-minute holiday knitting.
All stitches are basic and require only knowledge of the knit stitch, purl stitch, yarn over, and k2tog (knit two together). The abbreviations used throughout the pattern are listed below.
Abbreviations:
CO — cast on
K — knit
P — purl
K2tog — knit two together
YO — yarn over
PM — place marker
SM — slip marker
Rnd — round
Rep — repeat
BO — bind off
RS — right side
The Pattern: Classic Christmas Drawstring Gift Bag
This pattern makes a medium-sized gift bag approximately 5 inches wide and 7 inches tall, which is ideal for small gifts like a candle, a bundle of chocolates, a pair of folded socks, a small bottle, or a collection of small items. Size adjustment instructions are included after the main pattern.
Casting On the Bottom
Using the Turkish cast-on or Judy’s Magic Cast-On, cast on 10 stitches to each needle for a total of 20 stitches. If you are not familiar with either of these techniques, you can work the base as follows instead: CO 10 stitches using a long-tail cast-on, leave a long tail, then pick up and knit 10 stitches from the cast-on edge for a total of 20 stitches arranged in the round. Join to work in the round, being careful not to twist.
If you prefer a completely flat base, you can skip this step and simply cast on 44 stitches, join in the round, and accept that the bottom of your bag will have a very small hole (which is unnoticeable once the bag is stuffed with tissue paper and a gift).
Increasing the Base
Round 1: (K1, M1, K to last stitch of needle, M1, K1) on each needle — 24 stitches total.
Round 2: Knit all stitches.
Round 3: (K1, M1, K to last stitch of needle, M1, K1) on each needle — 28 stitches total.
Round 4: Knit all stitches.
Round 5: (K1, M1, K to last stitch of needle, M1, K1) on each needle — 32 stitches total.
Round 6: Knit all stitches.
Round 7: (K1, M1, K to last stitch of needle, M1, K1) on each needle — 36 stitches total.
Round 8: Knit all stitches.
Round 9: (K1, M1, K to last stitch of needle, M1, K1) on each needle — 40 stitches total.
Round 10: Knit all stitches.
Round 11: (K1, M1, K to last stitch of needle, M1, K1) on each needle — 44 stitches total.
Round 12: Knit all stitches.
You now have 44 stitches on your needles arranged in a small oval, forming the bottom of the bag.
Working the Body
Continue knitting every round (stockinette in the round) until the body of the bag measures 5 inches from the base, or until you have reached your desired length. This is approximately 30 rounds of plain knitting depending on your gauge.
If you would like to add a simple texture to the bag, you can substitute the plain stockinette body with one of the stitch patterns described in the customization section below.
Eyelet Round for Drawstring
Once the body is at your desired length, work the following eyelet round to create the channel through which your drawstring will be threaded.
Round 1: (K2tog, YO) around — 44 stitches remain.
Round 2: Knit all stitches.
Ribbed Cuff
Work in K2, P2 ribbing for 8 rounds.
Bind off loosely using a stretchy bind-off. A good option is to knit two stitches, then pass the first over the second as in a standard bind-off, but give yourself a bit of extra yarn on each stitch to keep the edge flexible.
Finishing
Weave in all ends using your tapestry needle. Thread your ribbon or I-cord through the eyelet round using a tapestry needle or a crochet hook. Pull both ends to close the bag, then tie them together in a bow. Trim the ribbon ends at an angle if you like a clean look.
How to Adjust the Size
One of the best things about this pattern is how easily it scales up or down. Here are a few general guidelines for customizing the dimensions.
For a smaller bag, ideal for jewelry, a gift card, or a small ornament, reduce the base increases to end with 28 or 32 stitches instead of 44, and work only 3 to 4 inches of body before the eyelet round.
For a larger bag suited to a bottle of wine, a bulkier item, or a bundle of kitchen goods, increase the base to 56 or 60 stitches and work 8 to 10 inches of body. You may want to use a slightly heavier yarn and larger needles to speed up the process.
You can also change the shape by working a flatter bag. Cast on 20 stitches flat, seam the sides after completing the body, and work the top flat rather than in the round. This gives you a bag with a more rectangular, envelope-like shape rather than the rounded pouch of the original pattern.
Stitch Pattern Ideas for the Body
Plain stockinette is lovely and classic, but if you want to add a little personality to your gift bags, here are a few simple stitch patterns that work beautifully in this format.
Seed Stitch: Alternate K1 and P1 every round, shifting the pattern by one stitch on each round so that knit stitches sit above purl stitches. This creates a bumpy, textured fabric that has a wonderful handmade look and holds its shape well.
Garter Stitch in the Round: Alternate one round of knit with one round of purl. This creates the classic ridged garter texture and works beautifully in a chunky yarn.
Simple Rib: Work K2, P2 ribbing for the entire body of the bag. This gives the bag a stretchy quality that is forgiving of different gift sizes and looks sleek and elegant when tied with a ribbon.
Broken Rib: Work K3, P1 for each round. This creates a subtle vertical texture that is more visually interesting than plain stockinette but just as easy to work.
Moss Stitch: Similar to seed stitch but with a slightly more defined texture. Work K1, P1 for two rounds, then shift the pattern so that P1, K1 for the next two rounds. Repeat. The result is a dense, fabric-like texture that is especially beautiful in a natural-fiber yarn.
Embellishment Ideas
Once your bag is knitted and finished, the fun really begins. Here are some ideas for making your gift bags feel extra special.
A simple duplicate stitch motif worked in a contrasting color can transform a plain bag into something truly stunning. A small snowflake, a Christmas tree, a star, or the recipient’s initial are all achievable in an afternoon with just a tapestry needle and a few yards of contrasting yarn.
You can also sew on small buttons, beads, or sequins after the fact. A scattering of pearl beads gives a bag an elegant, wintry feel, while brightly colored buttons on a child’s gift bag make it immediately festive.
Pom-poms are another easy and delightful option. Attach a small pom-pom to each end of the drawstring ribbon so that when the bag is tied, the poms dangle cheerfully from the bow. You can make pom-poms from the same yarn as the bag, from a contrasting color, or from a fluffy faux-fur yarn for extra whimsy.
If you enjoy adding embroidered details, a few simple stitches in a gold or silver metallic thread can give your bag a luxurious feel. Even a line of running stitch along the cuff or a star burst worked in chain stitch just above the base adds visual interest without requiring any advanced embroidery skills.
Yarn and Color Combinations to Try
Choosing the right yarn and color combination is half the fun of this project. Here are some pairings that work especially well for Christmas gift bags.
A deep burgundy red in a smooth merino wool with a cream cotton ribbon gives you an understated, elegant look that is timeless and beautiful. This combination feels luxurious without being garish, and it suits gifts for adults of any age.
Forest green paired with a gold satin ribbon is cheerful and classic. Add a small embroidered snowflake in white or cream, and you have a bag that looks like it came from a boutique holiday shop.
Cream or ivory yarn with a red and white striped ribbon creates a sweet, old-fashioned charm reminiscent of peppermint candy canes. This is a wonderful option for children’s gifts.
Navy blue with a silver ribbon feels sophisticated and modern. A small amount of silver sparkle yarn held alongside the navy creates a subtle shimmer that is beautiful under holiday lighting.
For a more contemporary look, try a charcoal grey or warm oatmeal yarn with a brightly colored ribbon in coral, teal, or mustard. Not every gift needs to feel traditionally Christmas, and sometimes a bag that doubles as a year-round pouch is an especially appreciated gift within a gift.
Tips for Knitting Multiple Bags Quickly
If you want to knit a whole set of matching or coordinating bags, assembly-line knitting is your best friend. Work through all the bases at once, then all the bodies, then all the finishing steps. This keeps you in a rhythm and means you are never switching mental gears mid-project.
Pre-cutting all your ribbons to the same length before you begin finishing also saves time and ensures a consistent look across your set of bags.
Consider setting up a small knitting kit with the exact materials you need for each bag: a pre-wound ball of yarn in the right amount, a length of ribbon in a zip-lock bag, and a short note with any customizations for that particular gift. This makes the process feel organized and keeps you from hunting through your supplies every time you sit down to knit.
A Note on Giving Handmade Gifts
Handmade gifts carry a weight that store-bought items simply cannot replicate. The time, thought, and care that go into making something with your hands communicate affection in a way that money cannot buy. A knitted Christmas gift bag is a small thing, but it is also a permanent thing — something the recipient can bring out each year, fill with a return gift, and remember the person who made it for them.
If you knit this pattern, I would love to hear how it turned out. Leave a comment below with your yarn choice, any modifications you made, or a description of how you plan to use your bags this season. Knitting is always better as a shared experience, and this community of makers is one of the things that makes the holiday season feel truly special.
Happy knitting, and may your needles fly fast as Christmas approaches.
