The Ultimate Oval Loom 3

Knitted Handbag – Simple 2-Needle Knitting Pattern


Even beginners will like to knit this easy knitted handbag. It’s a fast and simple 2 needle knitting pattern using basic knitting stitches.

I wanted to knit a bag that would be for those casual running around days so I came up with this very simple knitting pattern.

knitted handbag


For a PDF of my knitted handbag pattern…Click Here

Knitted Handbag Details

Skills Required:  Knit and Purl

Materials: 4 skeins Elann Peruvian Highland Wool, Color-Mocha Cream, 1 Ball Patons Classic Wool, Color-Emerald

Needles:  US 5 (3.75 mm) and US 7 (4.50 mm)

Gauge:  4 sts and 7 rows = 1 inch  (But don’t stress too much over gauge)

Finished Measurements: Lying flat approximately 16 ” X 10″

Abbreviations:   RS = right side,  WS = wrong side, sts = stitches

Pattern Notes:  

  1. I made a 1 inch hem leaving the ends open so that I could slide the handles through easily.  This hem will be folded over to form a pocket for the handles.
  2. Slip the first stitch of every row as if to purl and knit the last stitch of every row.
  3. If you don’t want to knit the handles you could look in your local craft store for some prettier ones.  I tried to find some but unfortunately I couldn’t find any so I just knitted them instead.

Knitted Handbag Pattern

Starting at hem and size 5 needles:

Cast on 67 sts.

Work in Stockinette stitch for 9 rows ending on a knit row.

Next Row:  Switch to size 7 needles and with WS facing:  Knit (This marks the fold line for the hem)

Stitch Pattern

Row 1:  Knit

Row 2:  Purl

Row 3 – 7:  Knit

Row 8:  Purl

Row 9 and 10:  Knit

This forms pattern.  Work pattern until work measure 10 inches from fold line of hem. (This should be about 24 ridges of Garter stitch not counting the hem line row)

Next Row:  Knit

Form Bottom Gusset

Next Row:  WS – Knit (This marks the gusset by creating a garter st. ridge)

Work 14 rows of Stockinette st. to form bottom gusset or approximately 2″ ending with a knit row.

Next Row:  WS – Knit (Marking gusset again)

Continue on with stitch pattern knitting up other side of bag for 10 inches

Next Row: (Beginning of hem line) WS – Knit

Next Row:  Switch to size 5 needles and knit Stockinette st. for 8 rows for hem.

Bind of loosely

Gussets:  (Make 2)

Note:  When knitting side gussets you’ll be matching the width of the sides to the width at the bottom of bag so it’s all symmetrical. And a little reminder, you can make both gussets at the same time by using 2 balls of yarn or by using both ends of 1 ball.

Cast on 8 sts.  And work garter stitch for 10 inches (length of side of bag) and cast off loosely.


Seam gussets to the bag.  Weave in ends.  Lightly steam the hem so it lies flat and sew into place leaving ends open for the handles.


I made I-cord handles in each color then seamed them together.  I was trying something a little different. You can make them any length you like.  When you’re finished just work it through the hem on your bag. Then seam ends of I-cord handle together.

Or if you prefer here’s an alternate handle you can knit up quickly and will work really nicely too.

Alternate Handle

If you would like to try another very simple type handle you can simply cast on 8 sts and knit garter stitch until you reach the length you would like for the handle.  Just remember that garter stitch is very stretchy so it will lengthen when you slip it on your shoulder.  The nice thing about this handle is that it will lie flat on your shoulder and won’t slip off.

Lining Your Bag

It isn’t always necessary to line a bag.  It just depends what you will be using it for. I have to admit that I don’t sew very much but I did decide that I would line this particular bag.  You can use a sewing machine to seam the fabric or if you prefer you can also hand sew it.

Here’s how I sewed the lining.

Measure your knitted bag.

Cut two pieces of the fabric liner making them 1″ wider and longer than the panels on your knitted bag.  This is for the seam allowance.

Cut out one long gusset that is 1″ wider than the knitted bag and 1″ longer to also allow for the seam allowance.

Pin the gusset and panel pieces together with RS facing. Then with sewing machine or needle and thread sew seams along the pinned edges making sure to leave a 1/2″ seam allowance.

Place the lining in the bag matching up the corners and seams and then stitch in place.  I sewed extra stitches along the bottom gusset and side gussets to reinforce it.

The top of the lining to my bag sits just below the handles, along the knitted hemline that was created for the handles.

Fold over the lining and whip stitch it all around the hemline of your knitted bag. Actually I went around the top twice just to reinforce it.

Enjoy your knitted handbag!

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