Abstract: A folding machine for flat material such as bed sheets or blankets which folds the material into thirty-seconds, conveys the material to an integral stacker and stacks the same. The machine includes a positive drive to each of a pair of relatively movable folding rolls through a single belt which insures that the two rolls are driven at exactly the same speed. The conveyor also serves to smooth the material by removing wrinkles so that the folded material has an ironed look. The stacker is shaped to give the material extra rigidity so the conveyor can push the material onto the stacker and includes a pair of drop doors sized and positioned to achieve maximum stack height without increasing the size of the overall folding machine.