Water Color Painted Paper Gift Tags – A Handmade Christmas

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Welcome back to A Handmade Christmas! Today, it’s week four, and I am sharing how I made watercolor-painted Paper Gift Tags.

This is a simple, creative, and budget-friendly way to bring a handmade charm to your holiday season. It’s the fourth project in my weekly handmade holiday series, and it may be one of the most versatile crafts yet.

Three wrapped gifts with red and gold ribbons, each topped with a hand-drawn floral gift tag featuring pink and red designs, placed on a light wooden surface.
Four images show holiday-themed items: decorated cookies, vintage glass ornaments in a bowl, frosted cookies with tree designs, and a festive dining table setting with holiday decor.
Text logo reads: "MY 100 YEAR OLD HOME | A HANDMADE CHRISTMAS" in capitalized, gray letters on a white background.

Water Color Painted Paper Gift Tags

Five paper ornaments with floral and leaf patterns in pink, red, and gold tones are arranged on a green background.

I love painting with watercolors, and for this project, I cut them into festive ornament shapes, painted abstract shapes in a holiday-inspired palette, and outlined them with a thin black pen.

The results are whimsical and playful, and I look forward to using them on wrapped gifts, tied to napkins on my holiday tables, or even as part of a centerpiece.

This project was inspired by one of my favorite past crafts, Spring Papehttps://my100yearoldhome.com/spring-paper-craft-ideas/r Craft Ideas, which I used the same process for. The only difference is the shapes and colors—this time, everything has a Christmas twist!

Why I Love Handmade Paper Decor

A red gift box wrapped with a gold ribbon and bow, featuring a hand-painted ornament-shaped tag with a leaf pattern.

One of the things I love most about handmade projects is that they allow me to add a personal, thoughtful touch to the holidays. Handmade doesn’t mean complicated—it means unique, meaningful, and filled with joy.

These watercolor gift tags are a perfect example. They’re quick to make, require just a few supplies, and can be customized for any holiday style. If you prefer traditional red and green, you can lean into those. If you love neutrals, stick to tans, sage, and gold. I chose a palette that mirrors the one I’m using for this season’s decorating: soft sage greens, light warm reds, pops of tan, and touches of metallic gold.

Seven paper ornaments with watercolor floral designs in pink, red, and gold are arranged on a light wooden surface.

The best part? These little cutouts are multifunctional. They’re not just gift tags—they’re also decor accents for tables, ornaments for mini trees, or even wall art when arranged together in a frame.

Supplies You’ll Need

Art supplies including acrylic paint bottles, a watercolor paint set, paintbrushes, watercolor paper pad, and a Cricut Maker cutting machine are arranged on a table.

Here’s what you’ll need to make these watercolor tags and decor pieces:

I may occasionally use affiliate links on this blog, which means I earn a small commission if you purchase through one of these links. The price will be the same whether you use the affiliate link or go directly to the vendor’s website using a non-affiliate link.

A set of eighteen blue-handled paintbrushes with gold ferrules, in various shapes and sizes, perfect for paper craft ideas, all arranged side by side.

Paint Brushes Set

A 36-color watercolor pan set with a paintbrush, perfect for paper craft ideas, featuring a variety of vibrant colors in a sturdy plastic case.

36 Color Watercolor

Front cover of an Amazon Basics watercolor book, featuring a landscape painting with trees, a house, and fields—perfect for exploring paper craft ideas. The book includes 30 sheets of 9x12 in, 140lb paper.

Amazon Basics Watercolor Pad, 9″x12″

A Cricut cutting machine with assorted vinyl sheets, two cutting mats, a pen, a cutting blade, a scraper tool, and a tablet displaying the Cricut design app—perfect for creating custom gift tags and DIY projects.
Cricut Explore 4 – Smart Cutting Machine (Seashell)
Four different shaped black Christmas ornaments, resembling elegant gift tags, hang on strings against a gray background.
Holiday Ornaments Stencil
A spool of olive green ribbon is partially unwound, with the ribbon extending in a wavy line—perfect for accenting gift tags.
Velvet Ribbon for Gift Wrapping Christmas
Two black permanent markers with extra fine tips are shown next to their box, with squiggly lines drawn to demonstrate the tip precision—perfect for adding neat details to gift tags.

ARTISTRO 2 Black Permanent Marker – Waterproof

A drawing set with graphite and charcoal pencils, sharpener, erasers, blending stump, and colored pastel sticks arranged neatly on a white background—perfect for exploring new paper craft ideas.

Amazon Basics Sketching and Drawing Art Pencil Kit

Two spools of twine, one red and white, the other green and white, standing upright side by side—perfect for adding a festive touch to your gift tags.
2 Rolls Christmas Twine

Step-by-Step Instructions

Two rectangular gifts wrapped in red paper and pink ribbon, decorated with hand-painted floral ornaments and surrounded by colorful round candies.

Step 1: Cut Them Out

Six white paper cutouts in various Christmas ornament shapes are arranged on a green square background.

I went on Cricut and designed some ornament shapes, which I downloaded for free. You can either cut out the shapes on watercolor paper using your Cricut or use these as a stencil and trace and cut them out by hand.

You can also use this stencil.

If cutting by hand, carefully cut out each shape. Don’t worry about perfect edges; the hand-cut look adds to the charm. If you want a more polished look, you can trace around a template before cutting, but I personally love the organic, slightly imperfect shapes.

*Important Tip – After making these, I realized how I could have made so many more without any work. After you cut them out, trace the ornaments on one page and paint all the gift tags on a single sheet of cardstock or watercolor paper. When you are done, make color copies of your project on cardstock and cut them out! How easy is that!

Step 2: Paint Your Watercolors

A circular ornament with pink and red watercolor flowers and yellow centers, featuring a yellow tab at the top, placed on a white background.
A round ornament-shaped paper features hand-painted pink flowers with yellow centers and green leaves on a white background.

Start by painting blocks of color on your watercolor paper. Don’t worry about making them perfect as watercolors are meant to be fluid and playful.

A white ornament-shaped cutout with red and pink watercolor blotches painted on it, placed on a light brown surface.
A paper ornament cutout painted with red and pink watercolor flowers, placed on a brown surface.
A paper ornament shaped like a bulb with a pointed tip, decorated with red and pink watercolor flowers and green leaves on a white background.

I painted washes in green, orange, tan, and gold, incorporating some wet-on-wet blending for added interest and texture.

These are five-petal flowers that have two colors in the petals and a bright yellow center.

Let your brushstrokes be loose and natural. I painted some areas darker and others lighter to create variety. These washes will become the base for your cutouts.

Step 3: Add Pen Outlines

A hand-painted ornament with pink and green abstract dots and a single outlined leaf, topped with a gold loop, on a white background.
A paper ornament shaped like a teardrop is decorated with red and green leaves and gold dots, resting on a light wood surface.

Once the paint is dry, use a thin, black, waterproof pen to sketch the outlines of your shapes.

It always surprises me how much better these look with the pen outline!

A hand holds a paper ornament painted with red and pink flowers, green leaves, and a yellow top, placed on a white surface.
A hand-painted ornament-shaped paper features three red and pink flowers with green leaves on a white background.
A hand-painted ornament with a gold top, decorated with red and pink flowers and green leaves on a white background.

The outline is effortless to do. Just use a whimsical approach and have fun.

You can also copy what I did.

A hand-painted ornament-shaped card featuring red and pink flowers with green leaves and yellow accents on a white background.
A hand-drawn ornament featuring pink flowers with green leaves and yellow accents, outlined in black on a white background.

The black pen gives each shape definition and makes them pop against the soft watercolor backgrounds. I love the contrast of loose watercolor with the crisp black lines—it feels modern yet handmade.

A circular white ornament with red watercolor flowers, green leaves, and yellow accents, topped with a yellow tab, on a white background.
A round ornament with three red and pink flowers, green leaves, and yellow dots, drawn on white paper with a yellow loop at the top.

There are also a lot of other shapes you can make.

  • Christmas packages with bows
  • Whimsical Christmas trees
  • Stars, hearts, and other festive shapes

Step 4: Use Them as Gift Tags and Decor

A red gift box with a gold grid pattern, topped with a pink and gold ribbon and a floral ornament-shaped card featuring pink flowers and gold accents.

Now comes the fun part: using your paper cutouts! Punch a hole in the top of each one and thread with ribbon or twine to create gift tags.

You can also leave them as-is and tuck them into napkins for a Christmas table, scatter them on a runner as part of a centerpiece, or even hang them on small trees as ornaments.

Creative Ways to Use Watercolor Paper Cutouts

These little pieces of art are so versatile. Here are some of my favorite ways to use them:

Gift Tags

A rectangular gift wrapped in red paper with a large red ribbon bow and a round floral gift tag featuring pink flowers.

Attach them to wrapped gifts with ribbon or twine. Write the recipient’s name on the back for a personalized touch.

A close-up of a roll of red wrapping paper with scattered gold and silver specks, perfect for pairing with festive gift tags.
MAYPLUSS Gift Wrapping Paper Roll
A roll of wide red satin ribbon, perfect for gift wrapping, partially unwound on a white spool.

1-1/2″ Wide Red Satin Ribbon – 50 Yards

Five rolls of sheer ribbon in maroon, red, green, teal, and gold are elegantly arranged in a row, perfect for adding a touch of flair to gift wrapping.

5 Rolls Holiday Color Organza Ribbon

Table Decor

Seven paper ornaments with watercolor floral designs in pink, red, and gold are arranged on a light wooden surface.

Tie them around napkins as place settings, scatter them down the center of your table as confetti-like accents, or even write names on them to use as place cards.

Four white cotton napkins with red trim, decorated with reindeer and greenery; inset shows a detailed scene of reindeer pulling a sleigh. Includes festive gift tags. Label reads "Maison d'Hermine, Designed in Europe.
Maison d’ Hermine Cloth Napkins Set of 4 100% Cotton
Two red and white striped cloth napkins are shown: one is neatly folded, tied with a white ribbon and finished with gift tags, while the other is fanned out and decorated with artificial red berries and green leaves.
Creative Co-Op 18″ Square Cotton Napkins w/ Stripes
A decorative string garland with multiple gold glittery star shapes, perfect for adding charm to any space or pairing with gift tags, hangs along a thin, clear wire against a white background.
Creative Co-Op Decorative Glitter Paper Star Garland

Ornaments

A circular ornament with a gold top, featuring watercolor-style red and pink flowers, green leaves, and yellow dots on a white background, placed on a green textured surface.

Hang them on a mini tree for a playful, lightweight ornament option.

A small artificial Christmas tree with pine cones and yellow lights, placed in a metallic bucket-style pot, accented with festive gift tags for a charming holiday touch.
Small Christmas Tree 24 inch
A small, decorated Christmas tree with string lights sits on a table alongside candles, pine cones, greenery, stones, and festive gift tags in a softly lit room.
Tabletop 22 Inch Mini Christmas Tree
A small artificial Christmas tree with white lights and gift tags, set in a brown burlap-wrapped base, against a plain white background.
‘Feel Real’ Artificial Mini Christmas Tree,

Art Displays

Frame a group of them together for an inexpensive piece of holiday art.

Rectangular photo frame with a gold branch-like border, displaying the text "Lawrence Home," dimensions 5 x 7 inches (12.7 cm x 17.8 cm), and styled gift tags on a plain background.
Lawrence Frames 5×7 Gold Metal Natural Branch Design Picture Frame
Framed print of Leonardo da Vinci's Vitruvian Man, featuring a male figure with arms and legs outstretched inside a circle and square, detailed measurement text overlay—perfect for pairing with unique gift tags.
11×14 Distressed Gold Ornate Vintage Picture Frame
A framed painting of a Christmas tree is displayed on a wooden surface beside a potted plant, gift tags, a lit candle, and decorative items.
Christmas Tree Framed Wall Art

Stationery

Tape one onto the front of a plain card for a unique handmade holiday card.

A set of red and green blank cards, perfect for use as gift tags, each stacked separately, with matching stacks of white envelopes arranged below them.
100 Sheets Christmas Blank Cards with Envelopes
Wooden box containing neatly arranged rubber alphabet stamps and numbers, perfect for adding a personal touch to your gift wrapping. Box is open with stamps visible.

Alphabet Stamps Set

A set of wooden stamps with holiday designs, such as a snowflake, reindeer, Santa, tree, and snowman, perfect for adding charm to your gift wrapping. Each stamp leaves a beautiful impression in gold wax, making every present feel extra special.

Christmas Wax Seal Stamp Set

Tips for Success

  • Use plenty of water: Watercolor is all about flow. Don’t be afraid to let colors bleed into each other—it creates beautiful effects.
  • Work in layers: If you want bolder colors, let the first layer dry and then add another wash on top.
  • Choose waterproof pens: A non-waterproof pen will smudge on watercolor, so ensure your outlining pen can withstand it.
  • Mix colors for interest: Try blending green with gold or orange with tan for unexpected results.

Why This Project Belongs in A Handmade Christmas

Two red gift boxes with pink ribbons and floral gift tags are displayed on a light wood surface, alongside two round floral-wrapped candies.

One of the things I love most about this series is that each project is simple, affordable, and customizable. These watercolor paper tags are no exception.

They cost almost nothing to make, as you may already have the supplies at home, and yet they add such a thoughtful, personal touch to the holidays. Handmade gift tags show your loved ones that you put in extra time and care, and using them as table decor makes your home feel curated and creative.

And because the process is fun and forgiving, it’s also a great craft to do with kids or friends. Everyone’s shapes will come out differently, and that variety adds to the charm.

Final Thoughts

A wrapped gift with a large red ribbon and bow, decorated with a round floral ornament featuring pink flowers, surrounded by matching floral cutouts on a light wood surface.

This week’s project, Water Color Painted Paper Gift Tags and Decor, might just be one of the most versatile crafts I’ve shared in A Handmade Christmas. They’re easy to make, endlessly customizable, and valuable in so many ways, from adorning gifts to decorating holiday tables.

I love the mix of watercolor softness with the crisp black outlines. I love that each cutout is unique. And most of all, I love how these little handmade touches elevate the holidays in such a simple, approachable way.

If you’re looking for a quick, creative project to add personality and charm to your holiday season, I hope you’ll try these watercolor gift tags. Trust me—they’ll make you smile every time you use them.

✨ Here’s to another week of A Handmade Christmas! I can’t wait to share what’s next.

Two green, tree-shaped candles; one is wrapped in clear plastic with a gold ribbon, and the other is unwrapped, both placed on a neutral fabric surface.

Creative Co-Op Tall Holiday Tree Shaped Candle

Cloth Embroidered Cocktail Napkins

Three felt Christmas tree ornaments in a box with straw, and two similar ornaments made with Air Dry Clay stand outside—one holding a place card labeled "Holly.

Creative Co-Op 4 Handmade Felt Wool Christmas Tree Place Card/Photo Holders

Gift wrap with a repeating pattern of nutcrackers, candy canes, trees, and festive decorations on a pink background. The wrapping paper is folded around a box and pairs perfectly with matching gift tags for a complete holiday look.
Pink Nutcracker Christmas Wrapping Paper
Two rolls of white fabric ribbon with red stripes, perfect for gift wrapping, alongside two tied bows of the same design.

1-1/2″ Wide White Satin Ribbon – 50 Yards

A roll of red metallic adhesive vinyl, perfect for gift wrapping, partially unrolled on a white surface.

Red Metallic Wrapping Paper, XL Roll

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Sixteen Weeks of A Handmade Christmas

Twelve hand-painted Christmas ornaments with different holiday designs and numbers, arranged on a white surface with green pine branches at the top.
Week One
Six colorful hand-painted glass ornaments in red, pink, yellow, and green shades arranged in a white decorative bowl on a rustic surface.
Week Two
Three ceramic napkin rings—green, red, and white labeled "LESLIE"—are placed on a light wood surface next to folded patterned cloth napkins.
Week Three
Three wrapped gifts with red and gold ribbons, each topped with a hand-drawn floral gift tag featuring pink and red designs, placed on a light wooden surface.
Week Four
Shop My Home
Favorite Finds This Month on Amazon

Anthropologie Inspired Christmas Decor

A collage of holiday-themed decor, including tree and stocking ornaments, throw pillows, garlands, candles, mini Christmas trees, and festive gift tags, labeled "Amazon Holiday Anthropologie Inspired.
SHOP HERE

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A wrapped gift with a large red ribbon is decorated with a watercolor-painted floral paper gift tag. Text reads: "Water Color Painted Paper Gift Tags – A Handmade Christmas.

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