Abstract: The present invention includes a system and method for packaging an undergarment that as a result of the packaging, the undergarment requires a substantially small amount of storage space that can be carried discretely on ones person during active times, and/or easily purchased when out on the go. The undergarment packaging system packages the undergarment so that it consumes a relatively small amount of space so that it can be easily and conveniently sold and/or vended to consumers in locations where they would most need them, for example in restrooms, gyms, spas, glove-compartments in cars, in airports, and the like.