I came across this tutorial for making handmade napkins, for everyday or any special occasion. They are so easy to make, you could whip up a dozen in just a couple of hours.
These would be a nice hostess gift, alone or with any combination of kitchen and table linens, such as placemats, table runner, casserole or pie carrier, dinner roll holder, apron, etc.
Check out the following video for folding Christmas napkins: