Abstract: A towel holding device configured to support a towel from an object is disclosed herein. The towel holding device includes an attachment mechanism, the attachment mechanism configured to attach the towel holding device to the object; a towel holding member, the towel holding member configured to removably hold the towel in the towel holding device; and a housing portion, the towel holding member being disposed inside of the housing portion, the housing portion configured to be displaceable relative to the attachment mechanism and the towel holding member so that the towel is capable of being inserted into the towel holding device. A towel holding system using the towel holding device is also disclosed herein.