1. Use felt to make decorations. There are lots of decoration possibilities using felt. Some suggestions include:
Make miniature felt stockings.
Make felt reindeer.
Make felt Christmas tree lights.
Make a felt gingerbread house.
Make felt doves.
Make felt hearts.
Make felt stars.
Make felt baubles.
Make felt carol singers or choir boys.
Make felt candy canes.
Make felt mini gifts.
Make felt angels.
2. Make felt stockings for Santa's goodies to be left in. Stockings have long been made from felt and the variations on designs are endless. It's a great way to use up scrap pieces of felt for the design.
Read How to make a Christmas stocking for more details.
3. Make gift packaging from felt. Make a felt gift cover that can be reused for other purposes after gifting, such as holding stationery, covering a book, holding bits and pieces, etc.
Make little felt bags to hold items like iPods, candies, and other small gifts.
Read How to sew an ipod case for more ideas.
4. Make the Christmas tree skirt from felt. Felt is ideal for covering the base of the Christmas tree. Red felt is a good color for this purpose.
5. Make cards from felt. Use scrap pieces of felt to create Christmas designs on card that provide a lovely raised, tactile feel to the card.
Read the homemade cards articles on wikiHow for more ideas.