This little gift bag (it's 5½" by 6½") is a great project for using up scraps of felt. I cut two panels for the front and back of the bag (one from blue, one from brown) and one bottom panel and two side panels from blue felt. To decorate the bag, I cut circles in a variety of sizes from light blue and chocolate brown felt and stitched them in layers on the front and back panels. I used coordinating embroidery floss and whipstitch to attach the circles, but running stitch and blanket stitch would work well too. Tan and brown buttons accent the center of each circle.
To assemble the bag, I stitched the side and bottom pieces to the front and back panels and added a blanket stitch border around the top. A length of brown ribbon makes a simple handle.
The dimensions listed for this project are just guidelines, of course. You can make a bag in any size or color, depending on the felt you have available in your stash.