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Novelty Gift Card Holder (In-the-Hoop)

Novelty Gift Card Holder (In-the-Hoop)

Create the perfect gift with an in-the-hoop gift card holder. These gift card holders are shaped like different objects, and use two hoopings so more detail can be included on the design. Follow along with the project instructions below to lean more.

Supplies & Materials:

- 1/2 yard of quilter's cotton

- Embroidery thread

- Tear-away stabilizer


- Temporary spray adhesive (such as Gunold KK100)

- Scissors

Designs included in this tutorial:

- EMP82835-1, Thanks a Latte Gift Card Holder (In-the-Hoop)

When you download the design, you will find multiple files. Some are embroidery files, and others are dieline files marked with the letters "DL". Dielines are used to cut the fabric to the correct shape and size. Open and print each dieline file using an embroidery software. If you do not have an embroidery software, take a look at our helpful video on using dielines.


We also recommend Wilcom's Hatch software which comes in different levels depending on what you'd like to use the software for. Hatch Organizer works well to view your designs, print dielines and templates, change design colors, and create basic design layouts. (This is an affiliate link. We may earn commission on purchases made with this link.)

Two printed design worksheets on gray surface showing outlines of a cup shape with grid lines, stitch count, and color information.

To begin, start with file "A". Spray the back side of the paper dieline with temporary spray adhesive, and smooth it on top of your fabric.

Blue fabric piece with a white paper pattern pinned on top showing a curved shield-like shape with light pencil markings on the paper pattern edges.

Cut out the shape along the dieline. This will be the pocket of the gift card holder.

Orange-handled scissors cutting out a paper pattern placed on light blue fabric, both on a dark gray surface.

Repeat this process for file "B", but this time cut two copies of the dieline as this piece will need a front and back fabric piece.

Two light blue fabric pieces shaped like coffee mugs with handles, and a pair of orange-handled scissors on a dark gray fabric background.

Hoop a piece of tearaway stabilizer. Madeira E-Z Tear 1.5 oz. or Floriani Tearaway Medium are good choices. Those brands are more fibrous, less paper-like, and will tear more cleanly.

Embroidery hoop with white stabilizer fabric stretched inside, resting on a gray textured surface, hoop is rectangular with rounded corners.

Attach the hoop to the machine and load the "A" file of the embroidery design (not the dieline files). Use a size 11 or 75/11 sharp sewing needle rather than an embroidery needle.


A sharp needle has a smaller, finer point than a embroidery needle, so that will make smaller perforations in the stabilizer.


Embroider the design. The first thing to embroider will be a dieline, or outline stitch. This marks the area on the stabilizer where we'll place the front pocket fabric piece.

Close-up of embroidery machine stitching a blue outline on white fabric hooped in an embroidery frame with a translucent stabilizer underneath.

Spray the back side of the front pocket piece with temporary spray adhesive. Remove the hoop from the machine, but do not unhoop the stabilizer. Place the front pocket piece right inside the sewn dieline.

Hand with light pink nail polish placing a blue fabric piece onto white stabilizer held in an embroidery hoop on a gray surface.

Attach the hoop back onto the machine and continue embroidering the design. A tackdown stitch will sew next. This binds the fabric in place for the remainder of the design.

Blue fabric square with stitched edges being sewn in an embroidery machine hoop on a white base, close-up view of the sewing process.

Once the fabric is stitched in place, all of the inner details will sew.

Close-up of an embroidery machine stitching black and purple thread on light blue fabric with the word "Thanks a LATTE" and decorative swirls on white stabilizer.

The final step for the pocket will be a finishing border that sews along the top edge of the pocket.


Close-up of machine embroidery in progress on blue fabric patch with black and dark blue thread reading "thanks a LATTE" and decorative lines and flourishes.

Unhoop the stabilizer and gently tear it away. Now that the pocket piece is finished, set it aside to use later on.

Light blue embroidered patch with dark blue border and decorative lines, featuring black text "Thanks a LATTE" on a dark gray fabric background.

Hoop a new piece of tearaway stabilizer. Attach the hoop to the machine and load the embroidery file "b" (not the dieline files).


Embroider the design. The first thing to embroider will be a dieline or the outline stitch. This marks the area on the stabilizer where we'll place the front fabric piece.

Close-up of a sewing machine foot stitching blue thread on white fabric hooped in an embroidery frame, with an outlined shape partially stitched.

Remove the hoop from the machine, but do not unhoop the stabilizer. Spray the back side of the "b" files front piece with temporary spray adhesive, and place the fabric right inside the sewn dieline.

White embroidery stabilizer hooped in a plastic embroidery frame with a light blue fabric cup applique stitched in the center. The background is gray fabric.

Attach the hoop to the machine and continue embroidering, a tackdown will sew next.

Close-up of a sewing machine stitching a blue fabric piece with a rounded rectangular shape and a small attached flap on a white surface.

Then the inner details will sew. On the color change sheet, look for the steps titled "back piece tackdown". When you get to that step, stop the machine and remove the hoop from the hoop from the machine. Do not unhoop the stabilizer.


Close-up of an embroidery machine sewing a decorative blue stitch pattern on a light blue fabric piece secured in the hoop against a white background.

As all the embroidery from here on out will be seen from both sides, wind a bobbin to match each of the remaining thread colors used in the design.

Spool of light purple sewing thread and a small bobbin with matching thread on a dark gray fabric background.

Spray the back side of the "b" file back fabric piece with the temporary spray adhesive. Turn the hoop over and place the fabric inside the shape on the back side of the embroidery.

Blue fabric shaped like a coffee mug appliqued and stitched onto a white stabilizer inside an embroidery hoop on a gray surface.

Attach the hoop back onto the machine. Continue the design. A tackdown step will bind all of the layers together, and some borders may sew.


Embroider the "Pocket dieline" step, and then pause the machine. This dieline will show where to place the embroidered pocket piece (file "a") that was embroidered earlier on top of the hooped fabric and stabilizer (file "b").

Close-up of a sewing machine stitching blue fabric with dark blue decorative embroidery swirls on a white stabilizer beneath the presser foot.

Remove the hoop from the machine, but do not unhoop the stabilizer. Using temporary spray adhesive, spray the back side of the pocket piece (file "a") that was embroidered earlier. Place the pocket piece on top of the front side of the hooped embroidery, lining it up with the sewn "pocket dieline".

Hand holds a light blue embroidered fabric piece shaped like a coffee cup with decorative swirls and text "Thanks a LATTE" in black and dark blue thread on a gray felt background inside an embroidery hoop.

Attach the hoop back onto the machine, and embroider the rest of the design. Continue using matching bobbins.

Close-up of a sewing machine stitching a blue fabric piece with black embroidery that reads "thank" and "LAT" with decorative swirls and lines.

After the embroidery is finished, remove the hoop from the machine, and unhoop the stabilizer. Carefully tear away the excess stabilizer from around the design. Also make sure to remove the stabilizer from the hanger loop.

Light blue fabric coffee cup patch with dark blue decorative swirls and lettering "Thanks a LATTE" in black, next to a dark brown fabric backing piece on gray felt background.

This completes the Novelty Gift Holder. Slide a gift card into the pocket, and give this handmade gift to someone special.

Two blue embroidered fabric gift card holders shaped like coffee mugs with decorative swirls and "Thanks a LATTE" stitched in black, each holding a gift card.