Materials:
3 -50 gr balls Crystal Palace Iceland in Black (#9598)–Main Color (MC)
2 -50 gr balls Crystal Palace Taos in Desert Blooms (#13)–Color A
1 -50 gr ball Crystal Palace Fjord in Lacquer Red (#4674)–Color B
1 -50 gr ball Crystal Palace Fjord in Strawberry Pink (#4891)–Color C
1 -50 gr ball Crystal Palace Fjord in Aloe (#4103)–Color D (D)
1 -50 gr ball Crystal Palace Fjord in Ivory (#1015)–Color E (E)
1 26" US Size #13 (9.0 mm) Crystal Palace Yarns Bamboo or Daisy Circular Needle
1 US Size #13 (9.0 mm) knitting needle (any type) for 3-needle bind off
4 stitch markers (one a unique color)
Spangles to embellish the heart applique
Flexible fabric glue and/or needle & thread to apply applique to the bag
1 pair Crystal Palace Yarns purse handles #HD-05BK (large bamboo style, black)

Dimensions:
Before Felting – 23" wide, 21" tall, 6¾" deep
After Felting – 16" wide, 14½" tall, 6" deep (This will vary depending upon the size and shape of box you use for blocking your felted bag. This bag was stretched over quite a large box to give it more capacity, but you could certainly use a smaller box to produce a slightly smaller, less stretched version.)

Body of bag:
The body is worked in one long rectangular piece in stockinette stitch (knit all right side rows, purl all wrong side rows). The striping pattern will be worked 5 times before binding off. The basic striping pattern will be 4 rows of Iceland (MC) followed by 6 rows of Taos held together with one strand of Fjord (A + another color). The fringes are created by leaving 6" to 8" yarn tails whenever colors are added or cut.

Color Sequence
MC 4 rows
A + B 6 rows
MC 4 rows
A + C 6 rows
MC 4 rows
A + D 6 rows
MC 4 rows
A + E 6 rows

Stitch Pattern
RS rows Sl 1 wyib, K to the end of the row
WS rows SL 1 wyif, P to the end of the row
Cast on 42 stitches with MC and begin to knit the stitch pattern above in the color sequence described above. Work the full color sequence 5 times (approximately 56") and then bind off all stitches. Cut the old color at the beginning of each new color change, being sure to leave 6" to 8" yarn tails at the beginning of the row where a color is added or discontinued. After binding off the rectangle, seam the two short ends to create a tube with vertical stripes.

Top fringes and band:
Right side facing and with the yarn tails at the top of the work, begin at the seam and pick up 100 stitches (2 for each MC stripe and 3 for each colored stripe). As you pick up the stitches make sure to bring all the yarn tails through to the front of the work. There will be 3 yarn tails for each stripe.
After picking up 100 stitches, place a marker, join, and knit in the round for 4 rounds and then bind off all stitches.

Bottom of the bag:
Turn the bag upside down, RS facing. As you did for the top band, begin at the seam with MC and pick up 100 stitches, as follows: PU 38, PM, PU 12, PM, PU 38, PM, PU 12, place the uniquely colored marker. Join and knit in the round for 12
rounds before beginning the decreases for the bottom of the bag.
On the 13th round, start to decrease the bottom of the bag according to the following 2 row pattern, until there are 2 stitches between the markers denoting the sides of the bag.
Decrease Round – *K1, SSK, K to the last 3 stitches before the marker, K2tog, K1* around.
Next Round – K
When there are 2 stitches remaining on each side of the bag, you will knit each one of them together with the stitch on the other side of the marker next to it as you make the final round (i.e. slip the end stitch, remove marker, slip the end stitch back to the LH needle, then K2tog). After the final round, when there are 26 front and 26 back stitches, divide them equally on each half of the circular needle, and then turn the bag inside out and do a 3-needle bind off.

3-needle bind off:
Hold the work so that the needles are in your left hand and are pointing to the right. *Insert the empty third needle knitwise into the first stitch on the front needle and then knitwise into the first stitch on the back needle, yarn over the needle and knit the two stitches together.* Repeat between the stars. There are two stitches on the third needle (in your right hand). Pass the right most stitch over the left stitch to bind it off. Continue knitting two stitches together from the front and back needle and then binding them off until all stitches are bound off.

Felting and finishing:
Felt the bag and the heart applique swatch using your preferred felting method. Shape the bag and swatch to dry. Some of the fringes may felt together. That’s ok . . . it adds to the gnarly, raggedy wildness of the look. But, you may carefully snip them apart if you prefer. Attach purse handles. Reinforce the bottom of the bag and/or line it if you want to add body and sturdiness. Attach the heart applique as described below.

Heart applique:
Cast on 21 stitches with Color B and knit a stockinette stitch swatch that is approximately 7" x 9". Felt this swatch along with the bag, and when blocked and dry, trace a heart shape onto it and cut it out. Attach your bling and then stitch and/or glue the heart to the front of the felted bag.

Pattern Copyright 2007 Crystal Palace Yarns/Straw Into Gold, Inc. - We are happy to share this pattern with knitters. The pattern may be used for non-commercial personal or knitting guild use. It is not to be used in any publication in print nor should it be reproduced in electronic/digital format
 without permission. Knitting shops carrying CPY Yarns Iceland, Fjord & Taos are welcome to print and share this pattern with customers of our yarns.

Designed, knit and felted by Terry L. Ross for Crystal Palace Yarns Be sure to look for Terry Ross' felted bag book: Twelve Bags Fulled at your local yarn shop. Here's information about Terry's book.