When you download a drawstring bag design, you'll find two files. One file will begin with the letter "X" followed by 4 numbers -- that's the embroidery file. The other file will be marked with "_DL" - that is the dieline file. That's the file that we'll use to cut the fabric for the front and the back of the bag.

Open the dieline file with your embroidery software and print it at full size. This is a "template."

If you don't have embroidery software, you can get a free 30 day trial of Embird from www.Embird.com.

Or, instead of printing the dieline and making a template, you can embroider the dieline. Hoop a piece of paper.

Embroider the dieline right onto the paper to make a template.

Place the template on a piece of fabric for the bag, and cut out the shape.

Do this twice -- once for the front of the bag, and once for the back.

You can use any type of fabric that you'd like to make the bag; we're using a medium weight craft felt.

Fold the top of each piece over to the back/wrong side of the fabric -- the template will show you how far.

Press the fold in place for both pieces of fabric.

For the back piece, use a bit of craft glue to hold the fold down. You won't need to do this for the front, just the back piece.

For the first few steps of the embroider design, we'll want the top and bobbin thread to match. Wind a bobbin with the same thread that you are using in the top.

Now that the fabric is cut and ready, and the bobbin thread matches the top thread, we're ready to embroider the design.

Hoop a piece of tear-away stabilizer.

Load the embroidery file (the file that begins with a "X" followed by 4 numbers) into your machine, and embroider the design.

The first part of the design to sew will be another dieline. This traces the area on the stabilizer where you'll place the fabric for the bag.

After the dieline has sewn, spray the corners of the wrong side of the front piece of the bag with a bit of temporary adhesive.

Place that fabric on the stabilizer, wrong side down, right in the sewn dieline.

Continue embroidering the design. The next thing to sew will be  tack down stitch -- this holds the fabric in place during the rest of the embroidery.

Next, you'll see the top seam and drawstring seams sew.

After those seams have finished, you can switch back to regular bobbin thread.

Now the design elements of the bag will sew -- and you'll see the bag really start to take shape now, with exciting and colorful art.

On the color change sheet you'll see a note that says "finishing seam." When you get to this step, stop the machine.

Spray the corners of the right side of the back piece of fabric with a bit of temporary adhesive.

Place that fabric, right side down, on top of the embroidery.

Continue embroidering with the last step of the design: the finishing seam.

Remove the stabilizer from the hoop, and gently tear the excess away from the bag.

Cut a piece of ribbon, or cord, or leather lace for the drawstring. We cut a piece about 18" long.

Thread the ribbon through the top of the bag. To make this step easier, we poked a safety pin through one end of the ribbon and used that to thread the bag.

Poke the ends of the ribbon through the side seams.

Turn the bag right side out, and fill with holiday or birthday treats.

Pull the ends of the ribbon to cinch the front of the bag.

Wrap the ends of the ribbon around to the back, and tie a neat bow.

And in the blink of an eye you'll have great-looking gift bags, just the right size for candy, gift cards, money, jewelry, and other little treasures.

To see the designs used in this project, look for Drawstring Bag designs at the Embroidery Library!