Market Bag Knitting Pattern (and Free Video Tutorial)
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This knit bag is so cute and practical. It’s great for toting around groceries, gym gear, beach wear and more. It’s, lightweight, eco-friendly and a fun knit!
The market bag is knit flat and then joined in the round to create the sides and top handles. It’s a unique construction that’s incredibly satisfying when it comes together. More on that below in “Pattern Notes.”
This bag pattern is appropriate for those who are comfortable casting on, knitting, purling, casting off and knitting in the round. This is a medium difficulty project. It’s recommended to both adventurous beginners and seasoned knitters.
This pattern tutorial will guide you through how to knit the market bag from beginning to end. Watch the video tutorial below for a step-by-step guide through the pattern.

Knit Market Bag Materials & Notes

- 2 balls of Paintbox Yarns Cotton DK in color Pistachio (50g/1.7 oz, 125m/137yd, 100% cotton)
- 32″ 3.5mm circular needle (a circular needle that is 32-42″ is ok)
- 6.5mm straight needles
- 1 stitch marker
- tapestry needle
Yarn Recommendations:
This bag is best knit with cotton, linen and hemp yarns. These fibres are hard-wearing with minimal stretch. The result is a sturdy bag that can hold a lot of weight without stretching out of shape.

Some favourite yarns:
- Rowan Creative Linen (50% linen/50% cotton in beautiful muted tones)
- Rico Essentials Cotton DK (100% cotton yarn in a variety of colors)
- Debbie Bliss Cotton Denim DK (100% cotton with a marled denim look)
Pattern Notes:
Garter Stitch Knit Flat:
Row 1: knit all sts
Repeat Row 1
Garter Stitch in the Round:
Round 1: knit to end of round
Round 2: purl to end of round
Repeat Rounds 1-2
M1P:
This technique increases one stitch purlwise. It’s similar to M1 (make one stitch), but the lifted strand of yarn is purled instead of knit. The accompanying tutorial video demonstrates this technique.

Garter Bumps:
During the Lace Repeat on Row 2 and 4, the first and last stitches are knit. This creates a garter bump along both edges of the lace. You will pick up stitches through these garter bumps during the Side Pick-Up.
Customising the Bag:
The width of the bag can be customised by adjusting the number of stitches in the lace repeat. The lace pattern will fit into a multiple of 2+1 stitches. For example, 50 sts (multiple of 2) plus 1 st = 51 sts for the lace repeat.
The length of the straps can also be customised by casting on more or fewer stitches. Thicker straps can be made by knitting more rounds of garter stitch before casting off.
Bag Construction:

Market Bag Video Tutorial
This knitting tutorial video walks you through how to knit the market bag from beginning to end.
Market Bag Knitting Pattern Instructions:
CO 24 sts with 3.5mm needles
Knit 8 rows in garter stitch
Switch to 6.5mm needles and work as follows:
*P1, M1P; repeat from * to last stitch, P1 (47 sts)
Lace Repeat:
R1 (RS): K2, *YO, K2tog; repeat from * to last stitch, K1
R2 and 4 (WS): K1, purl to last stitch, K1
R3: K1, *SSK, YO; repeat from * to last 2 sts, K2
Repeat Rows 1-4 of the lace repeat until piece measures 24” from cast on edge. End having worked Row 1 or 3.
Switch to 3.5mm needles and work decrease row as follows:
Decrease Row: K1, *K2tog; repeat from * to end of row (24sts)
Knit 6 rows in garter stitch and cast off.
Creating the Handles:
Side Pick-up:

With 3.5mm needles and with the right side facing up, pick up 5 stitches from top garter stitch edge.
Pick up 20 sts along each bump on the lace edge. Then, pick up every other bump for 15 sts. Pick up 20 sts along each bump on the remaining lace edge. Pick up 5 sts from top garter stitch edge.
Cast on 85 sts using backward loop cast on. This creates the handle.

Ensure cast on sts are un-twisted and repeat Side Pick-up instructions for the other side of the bag.
Cast on 85 sts for handle using backward loop cast on. Ensure handle cast on sts are untwisted. PM and join in the round with first stitch from side pick-up.
Top Handles:
Work garter stitch in the round as follows:
Round 1: purl all sts
Round 2: knit all sts
Repeat Rounds 1 and 2 for eight rounds.
Cast off loosely and weave in ends.
Abbreviations:
* *: repeat the instructions between asterisks
CO: cast on
K: knit
K2tog: knit two stitches together
M1P: Make one stitch purlwise
P: purl
PM: place stitch marker
RS: right side of fabric
St(s): stitch(es)
SSK: slip one stitch, slip one stitch, knit two slipped stitches together
WS: wrong side of fabric
YO: yarn over
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I absolutely love this market bag pattern! The step-by-step video tutorial is super helpful, making it easy to follow along. Can’t wait to try it out and use it on my next trip to the farmer’s market. Thank you for sharing such a creative and practical project!
I absolutely love this Market Bag pattern! The design is both practical and stylish, and I can’t wait to try out the free video tutorial. Thank you for sharing such a creative and fun project!
I absolutely loved this Market Bag knitting pattern! The video tutorial was super helpful, and I can’t wait to make one for myself. Thanks for sharing such clear instructions! 💖 Can’t wait to see more patterns from you!
I absolutely love this pattern! The video tutorial makes it so easy to follow along, and I can’t wait to give it a try. Thanks for sharing such a great project!
Is this a pattern I can make and sell?
Hi, you’re welcome to sell the finished item. I would appreciate it if you can credit Sheep and Stitch as the designer of the pattern and include a link to sheepandstitch.com Thank you!
Hi, yes you may sell the finished bag. I request that you credit Sheep and Stitch as the designer and provide a link to this website (sheepandstitch.com) in your sales tag and materials. Thank you!
Do you think there would be a way to make this without the handles? I have some cute Cocoknits leather handles that would look great on one of these! Thanks!
This looks like a fun pattern for my granddaughter to learn. She just started to knit. We will do this together.
Such a great bag! Thanks Davina!
I love your videos – you taught me how to knit!
I had a lot of issues with the handles and felt like my circ needle was fighting each other. Any suggestions?
With the 24 ” length recommendation, my bag was too short. I also didn’t have enough bumps for 20+ every other 15 + 20. I ended up with a bag that was 20 + every other 8 + 20 and then the bag was a bit short. Still cute but mini-version. I think my knitting may be too tight?
Your dog is so cute!!
I had this same issue – not enough bumps. I think I’m going to try picking up in every stick and not skipping. I only have 32 total bumps.
Hi Davina!
What a beautiful pattern! I’ve been dying to make this for ages. I was just wondering if it would be okay if I used aran instead of dk weight yarn? Would it mess up the gauge or anything?
Hi! The lace is very forgiving. I think aran would be fine!