- Print the gnome pattern onto iron-on transfer paper.
- Iron the gnome transfer onto muslin. Lay the muslin gnome on a second piece of muslin; pin. Cut out the gnome through both layers, allowing space around the design plus a 1/4-inch seam allowance.
- Turn cutouts with right sides together, and sew around gnome, leaving an opening for stuffing. Turn right side out. Stuff with fiberfill.
- Sew the opening closed with a whipstitch. Add a bow, write a name on the banner, and use as a gift tag. Or sew on a loop of ribbon to hang as an ornament.