Some ways to decoratively fold towels include folding towels into couch designs, flower designs or towel cakes. These folding designs are simple and visually appealing.
To make a towel couch, use three large towels folded in half and rolled tightly. Place two rolls side-by-side and the remaining one at the back. Keeping soaps and other toiletries on the couch makes the design appealing and functional.
To fold a towel into a flower design, use two colored towels of varying sizes. Lay the larger towel on a table with all four corners folded towards the center. Flip it over with one hand kept neatly beneath the towel to form a diamond shape.
Flip all the outer edges of the diamond and bring them to the center before reaching under each corner to pull the flap over. This partially forms petal-like shapes. Repeat the process for the smaller towel. Placing the smaller "flower" over the larger one makes a decorative piece.
To fold towels into a cake, use two large bath towels, two washcloths and two hand towels. Fold the towels lengthwise before rolling them up and securing them using with pins or satin ribbons. Place the large towel rolls on the bed, followed by a second layer of hand towel rolls and finally the washcloth rolls, to form a three-tier cake.