You have boxes of your toddler's baby clothes that include a few special items, right? Rather than giving that first onesie or adorable little dress baby came home from the hospital wearing, why not create one or more special keepsakes?
1. Button Art. This sweet piece of art is easy to make and perfect for almost any room in your house. Grab a button covering kit from a crafts store and snip small pieces of your favorite items to create the fabric covered buttons. Then just arrange them in a heart shape on a fabric covered piece of cardboard. Pop it into a distressed frame and you have art.
http://www.babble.com/baby/10-creative-keepsake-ideas-baby-clothes/
2. Baby Bear. Make a small patchwork piece of fabric from various pieces of your child's clothing and then use that to make this baby bear. The bear is actually pretty easy to make so I'd make two: one for the baby to play with and one to put away for when they are older and want it as a display.
http://rosibutton.blogspot.com/2012/02/if-you-go-down-in-woods-today.html
3. Christmas Ornaments. Make these simple ornaments by cutting clothing in strips and wrapping around styrofoam balls. Add a ribbon and you're done. These would also make cute gifts for relatives.
http://emilyaclark.com/2009/12/diy-christmas-ornaments.html
4. Christmas Stocking. Create a patchwork of pieces of your child's clothing and then make it into a Christmas stocking. Because it's used for such a short while each year, it will keep your baby's clothing preserved for years to come.
http://www.prettyprudent.com/2011/11/by-craft/patchwork-baby-onesie-christmas-stocking/
5. Patchwork Quilt. If you're not a quilter, taking on a huge quilting project may seem overwhelming. What I like about this quilt is its simplicity. But keeping it basic, you're more apt to actually complete this project plus the bonus is that it will grow with the child and can be used in their room for years to come. Try a simple 9-patch pattern, trimmed with a solid color (I love the white in the sample). Once you put the pieces together, take your top, backing and trim to a local quilt shop for professional quilting. Trust me, the professional quilting makes all the difference to the finished look and ensures that the quilt will last for a long time to come.
http://agirlinparadise.blogspot.com/2011/03/work-in-progress-wednesday_30.html#.VPjH_8bDYaA