Lie-Flat Drawstring Bag Knitting Pattern

There is something deeply satisfying about knitting a bag. Unlike a sweater that requires you to guess at fit or a sock that demands absolute precision, a bag is forgiving in the best possible way. It holds its shape, it serves a purpose the moment it comes off the needles, and when you get the construction right, it lays beautifully flat — no lumpy bottoms, no puckered seams, no awkward gathering at the base. That is exactly what this lie-flat drawstring bag pattern is designed to do.

This pattern is worked from the bottom up, starting with a technique that creates a seamless, flat base before the sides are built up in the round. The result is a bag that sits flat on a surface, opens wide at the top for easy access, and closes with a simple drawstring pulled through a clean eyelet row. It is the kind of project that works perfectly in a sturdy cotton yarn for a market bag, a DK-weight wool for a project tote, or a chunky tweed for something you want to carry everywhere through autumn.

Whether you are a beginner who has just learned to knit in the round or an intermediate knitter looking for a weekend project, this pattern meets you where you are. The instructions are written out fully, and every technique is explained along the way.

What You Will Need

Before you cast on, gather everything together. Having your materials ready makes the process much more enjoyable, and there are no mid-project scrambles.

Yarn: Approximately 200–250 yards of a worsted-weight yarn (or any yarn that works with US size 7 or 8 needles). Cotton, wool, or a cotton-wool blend all work beautifully. For the bag shown here, a 100% cotton worsted in a warm terracotta was used.

Needles: US size 7 (4.5mm) or 8 (5mm) double-pointed needles or a 16-inch circular needle, plus a longer circular needle (24–32 inches) if you prefer magic loop. You will also want straight or short circular needles in the same size for the flat base section.

Notions: A tapestry needle for weaving in ends, stitch markers (at least 4), a crochet hook or large blunt needle for threading the drawstring, and scissors.

Gauge: 18 stitches and 24 rows over 4 inches in stockinette stitch. The gauge is not critical for this project since it is a bag, but working to gauge will give you a finished bag that is approximately 10 inches wide and 11 inches tall before the drawstring is pulled.

Finished Dimensions: Approximately 10 inches wide x 11 inches tall (excluding drawstring), with a flat base that measures roughly 4 x 10 inches.

Understanding the Lie-Flat Construction

Before diving into the pattern, it is worth explaining why this bag lies flat while so many knitted bags do not. The secret is in how the bottom is constructed.

Many knitted bag patterns start with a simple cast-on, join in the round, and work straight up. The problem with this approach is that the base of the bag is essentially a flattened tube. When you set it down, it creates a rounded bottom rather than a flat one, and the sides often have a slightly oval, unstable shape.

This pattern uses a different approach. The base is knitted flat, back and forth in rows, as a simple rectangle. Once the rectangle is complete, stitches are picked up along all four edges and joined in the round. This creates a true box shape from the very beginning — the kind of shape you see in professionally made bags and totes. The base lies completely flat, and the sides rise cleanly from each edge of the rectangle.

It is a technique used in Japanese and Scandinavian knitting traditions for bag construction, and once you try it, you will likely never go back to the simple cast-on method.

Pattern Instructions

Section One: The Flat Base

Using your straight or short circular needles, cast on 18 stitches using the long-tail cast-on method. The long-tail cast-on creates a firmer, more structured edge that will form the foundation of your bag base.

Row 1 (RS): Knit across.
Row 2 (WS): Purl across.

Repeat Rows 1 and 2 until the piece measures 4 inches from the cast-on edge, ending on a WS row. You should have worked approximately 24 rows total. Do not bind off.

This rectangle is the base of your bag. The two short ends measure approximately 3.5 inches each (these will be the front and back base edges), and the two long sides measure 4 inches each (these will be the side base edges). Set this piece aside momentarily and pick up your circular or double-pointed needles.

Section Two: Picking Up Stitches Around the Base

This is the step that creates the lie-flat construction. You are going to pick up stitches along all four edges of the rectangle and place stitch markers to delineate each corner.

With the right side of the base facing you, begin at the top right corner of the live stitches already on your needle.

Edge 1 (Live Stitches — this is the top long edge): Work across the 18 live stitches already on your needle. Place a stitch marker (marker A).

Edge 2 (Right Short End): With the right side still facing, pick up and knit 12 stitches along the right short edge of the rectangle (picking up approximately 1 stitch per 2 rows, or slightly more densely if needed). Place a stitch marker (marker B).

Edge 3 (Bottom Long Edge — cast-on edge): Pick up and knit 18 stitches along the cast-on edge, picking up 1 stitch per cast-on stitch. Place a stitch marker (marker C).

Edge 4 (Left Short End): Pick up and knit 12 stitches along the left short edge. Place a stitch marker (marker D — this is the beginning-of-round marker).

You now have 60 stitches total on your needles: 18 + 12 + 18 + 12 = 60.

Join to work in the round, being careful not to twist. The stitch markers at each corner are your guides — you will always know exactly where the corners of your bag are.

Section Three: The Side Walls

Now that you have joined in the round, the bag essentially builds itself. Work in stockinette stitch (knit every round when working in the round) until the sides measure 9 inches from the picked-up edge.

There are a few things to keep in mind during this section. First, check in every few rounds to make sure the base is still lying flat. If you have picked up stitches too tightly around the corners, the base may pucker. If this happens, you can loosen those corner stitches slightly with the tip of your needle before they set. Second, the stitch markers at each corner are helpful for tracking where you are in the round — leave them in place throughout the side wall section.

At approximately the halfway point (around 4.5 inches of side wall), you can try the bag on over your hand to check the shape and depth. This is a purely visual check, since the size does not need to be precise, but it is a good way to decide whether you want a taller or shorter bag before you commit.

Continue until the sides measure 9 inches from the base, then proceed to the eyelet round.

Section Four: The Eyelet Round

The eyelet round creates the row of holes through which the drawstring is threaded. It is worked as a simple yarn-over and decrease sequence, and it creates a clean, decorative row that also adds a subtle waistline detail near the top of the bag.

Setup Round: Knit one round plain.

Eyelet Round: K2, yo, k2tog; repeat from to end of round.

Because you have 60 stitches and the pattern repeat is 4 stitches, this divides perfectly (60 ÷ 4 = 15 repeats). Each yarn-over creates a hole, and each k2tog maintains the stitch count. You will end the round with the same 60 stitches you started with.

Next Round: Knit one round plain.

Next Round: Purl one round. This creates a small turning ridge that helps the top hem fold over neatly.

Section Five: The Hem

After the purl turning round, work 6 more rounds in stockinette (knit every round). This creates a small hem that will fold to the inside of the bag, encasing the raw edge and reinforcing the drawstring channel.

Bind off loosely. A loose bind-off is important here — if the bind-off is too tight, the top of the bag will pucker and the drawstring channel will be difficult to fold inward. Use the standard bind-off, but try working it one needle size up if you tend to bind off tightly.

Section Six: Finishing the Hem

Fold the hem to the inside of the bag along the purl turning ridge. The bound-off edge should sit inside the bag, parallel to the eyelet round. Using your tapestry needle and a length of yarn, whipstitch the bound-off edge to the inside of the bag, working stitch by stitch around the full circumference. Keep the stitches relaxed — you want the hem to lie flat without pulling.

As you sew, make sure the eyelets remain visible from the outside and that the channel between the eyelet round and the sewn-down hem edge is open and large enough for your drawstring cord to pass through easily. Hold the drawstring cord or ribbon against the channel to test the fit before closing the hem completely.

Section Seven: The Drawstring

You have several options for the drawstring. The simplest is an i-cord knitted on two double-pointed needles. Cast on 3 stitches. Without turning your work, slide the stitches to the right end of the needle and knit across again, pulling the yarn tightly from left to right across the back of the work. Repeat until the i-cord measures approximately 36–40 inches. This gives you enough length to thread through the bag and tie a generous bow at the top.

Alternatively, you can use a purchased ribbon, a length of twisted cord, or a braided yarn drawstring. Any of these work well. If using ribbon, cotton grosgrain ribbon in a 3/8-inch width threads easily through the eyelet channel and holds a knot beautifully.

Thread the drawstring through the eyelet channel using a large blunt tapestry needle or a small crochet hook. Begin and end at the same eyelet (or at the front center of the bag), so that both ends of the drawstring emerge from the same point and can be tied together in a bow.

Tips for Customizing Your Bag

One of the best things about this pattern is how easily it scales and adapts. Here are a few variations worth trying once you have made the original version.

Sizing Up or Down: To make a larger bag, cast on more stitches for the base rectangle and pick up proportionally more along the short ends. A 24-stitch base with 16 picked up along each short end gives you an 80-stitch bag that is significantly roomier. For a small gift bag or pouch, cast on just 10 stitches and work a 2-inch rectangle, then pick up 8 stitches on each short end for a 36-stitch bag.

Adding a Lining: Because the base lies flat and the sides are even, this bag is unusually easy to line with fabric. Cut a piece of cotton or linen fabric to match the base dimensions, then cut two side panels to match the side walls. Sew them together into a simple box shape, fold the top edge under, and slip the lining inside the knitted bag before closing the hem. The lining prevents small items from slipping out through the fabric and gives the bag added structure.

Colorwork Options: The long side-wall section is an ideal place to introduce a simple stranded colorwork pattern. A two-color checkerboard, a Scandinavian border, or even a simple stripe sequence all sit beautifully on the smooth stockinette ground. Because you are working in the round, the right side always faces you during colorwork, which makes it much easier to track the pattern.

Textured Stitch Patterns: The side walls can also be worked in seed stitch, moss stitch, or a simple rib pattern rather than plain stockinette. If you use a textured stitch, make sure your yarn is smooth enough for the texture to read clearly — a heathered or tweed yarn can obscure subtle stitch patterns, while a solid or semi-solid color shows them off beautifully.

Yarn Suggestions

The yarn you choose will define the character of this bag more than any other decision. For a sturdy everyday tote, 100% cotton worsted has the best structure and washes easily — it resists stretching under weight and develops a lovely worn-in quality over time. Lion Brand 24/7 Cotton, Paintbox Cotton DK (held double), and Paintbox Simply DK Cotton are all reliable choices.

For a softer, more decorative bag — one you might use as a knitting project bag or a gift presentation — a wool-acrylic blend in DK or worsted gives you great stitch definition and a wide range of beautiful colors. Malabrigo Rios, Cascade 220, and Paintbox Simply Aran all work well.

If you want a bag with real substance and heft — something that feels almost structural — a cotton-linen blend is an excellent option. The linen content adds stiffness and a natural, earthy texture that improves with washing and use.

Gauge and Sizing Notes

As mentioned, the gauge is not critical for this pattern in the way it would be for a fitted garment. That said, working significantly looser than suggested will create a fabric with more drape and less structure, which can cause the bag to stretch out under weight. Working significantly tighter will give you a denser, more rigid fabric that holds its shape extremely well but may feel stiff initially.

If you are using this bag as a gift bag or for lightweight items like yarn or small gifts, a looser gauge is perfectly fine. If you plan to carry heavier items like groceries, craft supplies, or books, work at the suggested gauge or slightly tighter.

Final Thoughts

This lie-flat drawstring bag is the kind of project that you will come back to again and again. Once you have knitted it once, the construction becomes intuitive — you will find yourself picking it up for quick gifts, stash-busting projects, and those moments when you just want to cast on something satisfying that you know will come out beautifully.

The lie-flat base construction is a technique worth having in your knitting toolkit permanently. It applies to all kinds of bag projects, from simple drawstring pouches like this one to larger market bags, structured totes, and even knitted baskets. Once you understand why it works, you will start to see the logic in it everywhere.

Happy knitting, and when you finish yours, we would love to see it. Tag your finished bags with #OurDailyCraft so the whole community can admire your work.