Abstract: The present invention provides a new and useful gift packaging system, method and kit that includes an assortment of gifts and a decorative container and packing materials in which to present the gifts. The gift packaging system is pre-packaged together in a collapsed configuration that can be assembled into a constructed configuration. A container is provided of generally rigid material that is collapsible and constructable. When in the collapsed position, the container forms a generally rectangular, planer configuration. Further, packing material is provided in a partially overlying position with respect to the container. Gifts are also provided in a partially overlying position with respect to the container and the packing material. When in a collapsed configuration, a wrapping substantially encloses the packing material and gifts. The gift packaging kit can be constructed from the collapsed configuration upon removal of the wrapping.