Abstract: An automatic garment folding machine has a support plate on which the upper central portion of a garment rests, a cover plate which swings down to an operative position overlying that portion of the garment, and side folding plates by which longitudinally extending side portions of the garment are folded into overlapping relationship over its central portion. The cover plate has fixed and movable clamping members, the movable clamping member being movable downward to and upward from a clamping position in which it cooperates with the fixed clamping members, which are on the upper surface of the cover plate, to effect undulatory foreshortening of the folded and overlapped garment side portions, thus laterally tensioning the upper central portion of the garment into smooth flatness as well as confining the folded and overlapped portions against disarrangement by the side folding plates as they move back to starting positions.