
I made a few of these towels this past week for gifts. My mother-in-law made them for our kids when they were little and they were the best—each child had their own color and they hung them on their own peg in the bathroom. The only requirement for making a hooded towel is to sew a straight seam.
Hooded Bath Towel
Materials needed: bath towel, washcloth, matching thread
Directions:
a) Fold towel to find center point. Put a pin to mark the spot.
b) Cut 1½ inches off from the bottom of a washcloth. Fold washcloth (right sides together) to find center point and sew a seam (on the uncut edge of the washcloth) from the center of the washcloth to the edge. Turn inside out.

(I promise these are the same color of white!)
d) Putting the edge of the outside of the washcloth to the outside edge of the towel (center points matching) stitch washcloth to the edge of the towel.
e) Fold hood back over towel and stitch on the right side of towel a new seam which seals the raw edge of the washrag.
The thinner and smaller towels work great for newborns because you don’t lose the baby in them. The thicker, lush towels are great for older babies and toddlers.

This gift wraps attractively by simply rolling the towel up and leaving the hood on the outside of the roll and fill the hood with soap, shampoo, rubber duck or a few diapers. Or by folding the towel and putting it in a bath basket with wash cloths.