Abstract: A hanging towel is disclosed. The hanging towel comprises a towel with four generally perpendicular edges formed of a water-absorbing fabric. In one embodiment, two hanging slits are located on the towel allowing the towel to be hung on a peg, or similar shaped object. The two hanging slits are located on the hanging towel on opposing edges of the hanging towel, each at a location in a middle portion of the hanging towel and near the opposing edges. A slit reinforcing stitching area surrounds the two hanging slits. The slit reinforcing area consists of a frame stitch area, an outside stitch area, a fill stitch area and an inside stitch area.