Pillows

• Turn your dish towels into pillows.PhotoObjects.net/PhotoObjects.net/Getty Images
  
  Dish towels that are in good shape can be crafted into pillows. Find a dish cloth with an interesting design and fold it in half. Cut the two halves. Align the two halves by placing one on top of the other. Pin together the sides of the two halves. Starting in the center of an unpinned side, sew a 1/4-inch hem all the way around, leaving several inches unsewn. Stuff the pillow case with a pillow stuffing like polyfill until full. Sew the opening closed.
  
  

Coasters

• Flat cotton dish towels can be made into coaster sets. After washing and ironing a dish towel, cut it into four squares. Find a second piece of fabric for the bottom of the coasters and cut that into four squares equal in size to your towel squares. Align the two fabrics by placing the dish towel squares on top of the secondary squares so that you have four matching squares, each with a dish towel top. Pin the squares together. Starting in the center of one side of each square, sew the edges together.
  
  

Flatware Caddy

• Cute and eco-friendly flatware caddies can be fashioned from old towels. Fold up the bottom of a towel, leaving several inches at the top. Gather a few sets of silverware and place it in the fold of the towel, separating the forks, knives and spoons. If necessary, cut the towel to make it small enough to accommodate the flatware. Make sure the top of the towel can fold comfortably over the top of the flatware. Pin the towel on the folded portion to separate the different pieces. Take the flatware out of the towel and sew vertical seams where the pins are. Fold the top of the towel, roll the caddy up and tie with a ribbon or string.
  
  

Tote Bag

• Recycle an old towel to make a reusable shopping tote.Jupiterimages/Brand X Pictures/Getty Images
  
  Make a reusable shopping bag from a bath towel. Fold the towel in half and sew the sides closed. To make sure the bag is sturdy enough to carry groceries, fold the edges and sew the sides again. Turn the bag inside out. Make your handles by cutting two equal vertical strips from another towel. The length of the handles should be determined by whether you want your bag to be a shoulder or hand tote. Sew the two ends of one handle to the top of one side of the bag, and the two ends of the other handle to equal spots on the other side.