How to Laser Cut a Felt Banner with the xTool P3 Machine
There is something wonderfully old-fashioned about a hanging felt banner, but using a laser cutter to create one takes it to a whole new level. Instead of painstakingly cutting every little detail by hand, you can create beautifully intricate patterns with clean edges and precise cutting in a fraction of the time.
Did you know your laser cutting machine can cut felt!? Mind Blown!
I love these adhesives from Aleene's sent to me to try out--check them out here!
For this project, I made a colorful Hogwarts-inspired crest banner using my xTool P3 laser cutter. I used a vibrant blue-ish teal felt for the background, gold-yellow felt for the detailed crest, and orange felt for the larger banner shape.
A wooden dowel, beads, gold twine, and a little Aleene's glue turned the laser-cut felt pieces into a finished wall hanging.
The xTool P3 made this project especially fun because the built-in camera makes positioning the felt incredibly easy. Being able to see exactly where your material is sitting on the laser bed makes a huge difference when you're working with smaller pieces or trying to conserve material.
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Supplies Needed for Felt Banner Bunting:
- xTool P3 laser cutter
- Felt in Orange, Blue and Yellow (or whatever colors your heart loves)
- Cardboard
- Computer with xTool Studio software
- Design file (FREEBIE AT THE END OF POST)
- Aleene's Felt & Foam Tacky Glue
- Aleene's DIY Craft Heavy Duty Adhesive
- Wooden dowel
- Wooden beads
- Gold twine
- Scissors
- Heavy books
- Ruler or measuring tool
A note about felt
Felt comes in a multitude of colors and several different material types, so it is worth paying attention to what you're purchasing before putting it on a laser cutter. Wool felt, natural wool, wool blends, synthetic felt, and other synthetic fibers can behave very differently under a laser beam--I am using polyester felt and it works beautifully!
Natural wool and some wool blends can be an extremely versatile material for craft projects. Wool felt has a great feel and is popular for everything from doll making to intricate garments and even specialized applications such as wearable medical devices. There are also types of high-grade wool felt that are manufactured for industrial applications.
Synthetic material can contain additives that aren't appropriate for laser cutting, so always check the manufacturer's specifications before cutting anything in your machine. You want to avoid materials that can produce harmful substances or a release of toxins when exposed to heat.
Some felt is manufactured from recycled fibers, while other varieties are made from new wool. There are even environmental considerations surrounding the mottled recycling of old wool and how different fibers are processed. If you're unsure about a particular material, check its composition and the manufacturer's recommendations rather than assuming that all felt is safe to laser cut.
And, as always, proper ventilation is important when laser cutting any material. If you notice an unusual burnt smell, smoke, or other unexpected reaction, stop the machine and investigate the material before continuing.
Step 1: Place the Felt on Cardboard
I started by placing a piece of cardboard on the slats inside my xTool P3, but a honeycomb bed would be better. Then I placed my yellow felt directly on top of the cardboard.
The cardboard serves as a handy backing material for this project and also gives the felt a stable surface while cutting. Felt is soft and flexible, so having it supported helps prevent movement and uneven edges.
Once everything was positioned, I used the xTool P3's camera to take a snapshot of the laser bed.
This is one of my favorite features of the machine. Rather than guessing where my material is located, I could see the actual felt in xTool Studio and position my design directly over it.
Step 2: Import and Position the Design
Next, I imported the design I wanted to cut into xTool Studio.
For this project, I used a simplified Hogwarts crest logo that I found on Pinterest and cleaned up a bit in Photoshop. If you're making something for sale, keep in mind that finding an image online doesn't automatically mean you have permission to reproduce it commercially.
For a project like this, use your own artwork, properly licensed artwork, or designs you have permission to reproduce.
Once the design was imported into xTool Studio, I lined it up directly on top of the camera snapshot of my felt.
The camera view makes this process incredibly simple. I could see exactly where the yellow felt was sitting and move the design around until I was happy with the placement.
This is particularly helpful when working with small quantities of expensive material. Instead of wasting felt because my design was slightly off-center, I could position everything precisely before starting the cut.
Step 3: Create the Offset Background
I wanted the finished crest to have a colorful background, so I used the offset tool in xTool Studio to create a second shape behind the detailed crest.
The offset follows the same general shape and proportions as the original design, creating a slightly larger silhouette.
This is a great technique for layered felt projects. The detailed top layer can be cut from one color while the larger offset shape underneath provides contrast and makes all those little details stand out.
For my banner, I cut the intricate crest design from a gold-yellow felt and the offset background from a vibrant blue-ish teal felt.
The combination of colors makes the detailed design pop, but you could easily customize this project using practically any color combination.
Step 4: Laser Cut the Felt
Now for the fun part: laser cutting!
I sent the design to the xTool P3 and started the cutting process. And let me tell you—the precision is astounding.
For my 1mm yellow felt, my machine was set to 80% power and a speed of 90 mm/s.
Those were the standard settings I was using for this particular material, and the machine cut flawlessly through both the felt and the cardboard underneath.
That said, after seeing how thoroughly it cut, I suspect this particular felt may not need quite that much power. The correct power settings will depend on your machine, the material quality, the material thickness, and even the specific brand of felt you're using.
Always test a small section first.
You don't necessarily want maximum power when you're trying to achieve clean cuts. In some cases, low power combined with the correct speed can produce a much nicer result, particularly with thinner materials.
Thicker felts may require completely different software settings. If you're working with thick felt, thicker felts, or a wool blend, don't assume the settings from one material will work perfectly for another.
The goal is precise cutting without excessive scorching or unnecessary heat.
Step 5: Glue the Felt Layers Together
Once the pieces were cut, I carefully removed them from the cardboard.
The intricate gold-yellow crest came out beautifully, including all those tiny details that would have been incredibly tedious to cut by hand.
I used Aleene's Felt & Foam Tacky Glue to attach the detailed gold-yellow layer to the larger teal offset background.
A little patience is helpful here. With intricate patterns, you don't want to flood the entire piece with glue. Apply enough adhesive to hold the layers together while keeping it away from the edges as much as possible.
Line up the pieces carefully, press them together, and allow the adhesive to grab.
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This is one of those projects where the precision of laser cutting really shines.
The clean edges of the two layers fit together so nicely that the finished piece looks much more complicated than it actually was.
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Step 6: Attach the Crest to the Orange Felt
Next, I cut a large piece of orange felt into a chevron shape using scissors.
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The orange felt became the main banner behind the layered crest.
Fold the felt in half and cut angle to make the chevron bunting shape with a point in the center.
I used more Aleene's Felt & Foam Tacky Glue to adhere the completed crest to the center of the orange felt.
Press the layers firmly together and make sure the crest is positioned where you want it before the glue sets.
At this point, it already started looking like a real little schoolhouse-style banner!
Step 7: Create the Dowel Sleeve
Now it was time to turn the flat piece of felt into an actual hanging banner.
From the back of the orange felt, I folded the top edge over itself to create a sleeve large enough for my wooden dowel.
I glued the folded section in place using the felt adhesive, making sure there was enough room for the dowel to slide through once everything was dry.
Then I placed several heavy books over the folded area to keep it firmly pressed down.
Aleene's directions recommend allowing the glue to dry for about one hour, so I left the books in place for an hour and let the adhesive do its thing.
This is a simple step, but it makes a huge difference. The books provide even pressure across the sleeve and help prevent the felt from lifting while the glue dries.
Step 8: Add the Wooden Dowel and Beads
After the sleeve was completely dry, I slipped my wooden dowel through the opening.
To finish the ends, I used Aleene's DIY Craft Heavy Duty Adhesive to attach wooden beads to both ends of the dowel.
The beads serve a decorative purpose, but they also provide a practical little stopper so the dowel stays inside the felt sleeve.
I let the adhesive dry completely before moving on to the final step.
Step 9: Add the Gold Twine
Finally, I tied gold twine onto each end of the dowel.
The wooden beads keep the twine from sliding off the ends, creating a simple way to hang the banner on the wall.
And that's it!
My laser-cut felt crest banner was finished!
Why I Love Laser Cutting Felt
This project really demonstrates why felt can be such a fun material to experiment with on a laser cutter.
You can create intricate patterns, layered designs, lettering, ornaments, appliques, banners, patches, and all kinds of decorative pieces without needing a means of an industrial die cutter.
A laser cutter gives you the ability to make custom designs in small quantities, which is especially useful for handmade projects. You can change a name, resize a design, swap colors, or create an entirely new pattern without needing to order a custom die.
The only downside is that not every type of felt is automatically suitable for laser cutting. Material quality matters, and synthetic fibers can behave very differently from natural wool. Some materials can produce chemical irritants or other unwanted byproducts when heated, so always verify that your specific material is appropriate for your laser cutter.
If you find a felt that cuts beautifully, though, you've got an ideal material for all kinds of creative projects.
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Tips for Better Laser-Cut Felt
If you're ready to try laser-cut felt yourself, here are a few things I've learned from this project:
Test first. Even if a material says it is 1mm thick, different brands and compositions can cut differently.
Pay attention to the material. Wool felt, wool blends, and synthetic felt aren't interchangeable. Check the manufacturer's information before cutting.
Start with a test cut. You may discover that your machine needs less power than the standard setting.
Keep the felt flat. Soft material can shift or curl, so a stable surface is helpful.
Use the camera snapshot. The xTool P3 camera makes positioning designs over your material incredibly easy.
Don't rush the glue. Let each layer dry properly before moving on to the next step.
Experiment with colors. Felt comes in an amazing range of colors, so you can make this project match a room, a party, a school, a team, or a favorite fandom.
A Fun Project with Endless Possibilities
I absolutely love how this banner turned out. What started as a simple piece of felt became a dimensional wall hanging with crisp, professional-looking details.
The xTool P3 made the detailed cutting part incredibly easy, and the ability to see my material through the camera in xTool Studio took much of the guesswork out of positioning.
You could use this same basic technique to create personalized name banners, nursery decor, holiday decorations, sports banners, classroom signs, party decorations, family crests, or just about any layered felt artwork you can imagine.
And because you're designing and cutting the pieces yourself, you aren't limited to whatever shapes happen to be available at the craft store.
From natural wool to appropriate synthetic materials, felt can be a wonderfully versatile material for laser projects. Just remember that material type, material quality, thickness, and power settings all matter. When you find the right combination, the result can be absolutely beautiful.
For me, the best part was watching those tiny details emerge from the laser cutter with such clean edges and precise cutting. It's one more reminder of why I love having a laser cutter in my craft room—there are just so many materials and possibilities to explore!
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CHECK OUT OTHER FUN XTOOL P3 PROJECTS HERE:
How to Make Acrylic Name Keychains DIY with xTool P3
There’s something extra special about having your name on something—especially when it’s colorful, handmade, and just plain cute!
These pastel acrylic name keychains are a fun project to make with the xTool P3 CO2 Laser, and they come together with just a few pieces of acrylic and some colorful hardware.
CHECK OUT MORE ON THE XTOOL P3 HERE:


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