By Jan Bay
This free crochet elf granny square pattern features a cheerful little Christmas elf with pointed ears, a red hat, brown hair and a sweet embroidered smile. The elf is crocheted right into the square, so there's no separate appliqué to sew on. If you'd rather use an appliqué, I also have a free crochet elf appliqué pattern on another page. Here, we'll make the elf first, then work green granny clusters around the edges. The finished square will make a festive addition to a Christmas blanket, pillow or handmade holiday decoration.
Explore More Free Christmas Crochet Patterns
Free Crochet Christmas Star Granny Square Pattern
Free Christmas Granny Square Patterns
See Supplies for This Project Here.
Jump to the Free Crochet Elf Granny Square Pattern
This little elf is made right into the center of the square, so you won't have to crochet a separate face and sew it onto a finished granny square. You'll start with his face, add the ears, hair and hat, then work the green background around him.
With worsted-weight yarn, the revised foundation is expected to produce a larger square, approximately 11 to 13 inches across after the green rounds and edging. This is a calculated estimate, not a measurement taken from a finished sample. Measure your first completed square before making several for a blanket.
Skill level: Intermediate. You'll need to know how to work in joined rounds, decrease stitches, change colors and make ordinary granny clusters. The elf's features are simple, but the shaping and green background require a little attention.
Construction: One connected crochet motif with directly worked ears, hair, hat and green background. No separate face or hat appliqué is sewn onto the square.
Estimated gauge: 16 half double crochet stitches and 11 rows = 4 inches using a 4.5 mm hook. This is a starting gauge, not a physically tested measurement for this exact pattern.
Expected measurement checkpoints:
Those measurements are estimates. Check your work against the shape of the finished example rather than trying to force the fabric into a particular measurement.
You won't need much yarn for one square. I'd choose a smooth worsted-weight yarn because it's easier to see where the stitches go, especially when you're making the little pointed ears and working around the elf.
Estimated yarn needed: Allow approximately 120 to 140 yards total for one square, including a little extra for adjustments. Green will use the most yarn, followed by peach and red. Actual use will depend on your gauge.
Keep the yarn weight consistent across all five main colors. If you mix a thick green yarn with a much thinner peach yarn, the background won't sit quite the same way around the face.
You won't need buttons, plastic eyes, beads or separate decorative pieces. The expression is embroidered, just like the finished example.
This pattern uses US crochet terms. If you need a quick reminder of the standard abbreviations, you can check the Craft Yarn Council's crochet abbreviation reference.
Sc2tog: Insert your hook into the next stitch and pull up a loop. Insert your hook into the following stitch and pull up another loop. Yarn over and pull through all three loops on your hook.
Sc3tog: Insert your hook into each of the next three stitches, pulling up a loop in each one. You'll have four loops on your hook. Yarn over and pull through all four loops.
Hdc3tog: Yarn over, insert your hook into the next stitch and pull up a loop. Repeat that partial half double crochet in each of the next two stitches. You'll have seven loops on your hook. Yarn over and pull through all seven loops.
Hdc4tog: Work the same way across four stitches instead of three. You'll have nine loops on your hook before the final yarn over. Pull through all nine loops.
Work the face in joined rounds without turning. The beginning chain-3 counts as the first double crochet in each face round. Join each round with a slip stitch to the top of that beginning chain-3.
When you begin the ears, hair and hat, you'll work back and forth in rows. The chain-1 used for turning does not count as a stitch.
Keep the right side of the face facing you when you position the ears and hair. It helps to put a marker at the top of the face before starting those details. The top is where the round joins meet.
Important: After completing Round 5, number the 60 stitches in the direction they were worked, starting with stitch 1 at the top join. This gives you fixed positions for the ears and hat. Keep those markers in place until the elf's head is complete.
The ears will be worked near the left and right sides. The white hat brim will cover the upper 24 stitches, and the brown hair will sit just beneath it.
For the green background, you'll make a connected chain foundation with four marked corners. The granny clusters are worked into that foundation, not sewn on afterward. Keep those foundation chains loose enough that the square can lie flat.
Start with the peach yarn. We're going to make a flat circle for the face, then shape the ears directly from its outer stitches. There's no need to make two separate ears and sew them on later.
Round 1: Make a magic ring. Ch 3 (counts as the first dc), work 11 dc into the ring. Pull the ring closed. Join with a sl st to the top of the beginning ch-3. (12 dc)
Round 2: Ch 3 (counts as the first dc), dc in the same stitch. Work 2 dc in each remaining stitch around. Join. (24 dc)
Round 3: Ch 3 (counts as the first dc), dc in the same stitch, dc in the next stitch. Repeat [2 dc in the next stitch, dc in the following stitch] 11 more times. Join. (36 dc)
Round 4: Ch 3 (counts as the first dc), dc in the same stitch, dc in each of the next 2 stitches. Repeat [2 dc in the next stitch, dc in each of the following 2 stitches] 11 more times. Join. (48 dc)
Round 5: Ch 3 (counts as the first dc), dc in the same stitch, dc in each of the next 3 stitches. Repeat [2 dc in the next stitch, dc in each of the following 3 stitches] 11 more times. Join. (60 dc)
Fasten off, leaving enough yarn to weave in the end.
Checkpoint: You should have a flat peach circle with 60 stitches around its outside edge. At the suggested gauge, it should measure approximately 4 3/4 to 5 1/4 inches across.
Don't add another round just because you want a larger face. The hat, ears and green background are planned around these 60 stitches. Changing that count will affect the rest of the square.
Lay the circle flat with its right side facing you and the round joins at the top.
Count the stitches in the direction you crocheted them and mark these locations:
The ears sit opposite one another, with the hat centered above them. If you're looking at the finished circle, the ears should be near the 3 o'clock and 9 o'clock positions.
With the right side facing, join peach yarn in stitch 14 of Round 5.
Row 1: Sc in stitch 14, hdc in stitch 15, dc in stitch 16, hdc in stitch 17, sc in stitch 18. (5 sts)
Row 2: Ch 1, turn. Sc2tog across the first 2 stitches, sc in the next stitch, sc2tog across the final 2 stitches. (3 sc)
Row 3: Ch 1, turn. Sc3tog across all 3 stitches. (1 sc)
Fasten off and weave in the end. Don't pull the final stitch tightly enough to curl the ear.
Join peach yarn in stitch 43 of Round 5.
Row 1: Sc in stitch 43, hdc in stitch 44, dc in stitch 45, hdc in stitch 46, sc in stitch 47. (5 sts)
Row 2: Ch 1, turn. Sc2tog across the first 2 stitches, sc in the next stitch, sc2tog across the final 2 stitches. (3 sc)
Row 3: Ch 1, turn. Sc3tog across all 3 stitches. (1 sc)
Fasten off and weave in the end.
Lay the face down again with the top join pointing upward. Both ears should extend from the sides, with a little point at the end of each one. They don't have to be stiff. A small amount of blocking will help them lie flat.
If one ear curls more than the other, check the decreases before changing anything. Both ears should have the same 5, 3, 1 stitch sequence.
Keep the final stitch at the tip of each ear easy to find. You'll attach the green background to those two points later.
The brown hair has four little points hanging down over the forehead. We're going to crochet them directly into the front loops of the peach stitches. The white hat brim will use the back loops of those same stitches, so the two colors can sit neatly together.
Keep the right side facing you. The four hair sections will use the 24 upper stitches of Round 5.
Mark the hair-tip attachment points: Before crocheting the hair, locate the 36 stitches of Peach Face Round 3. Begin with that round's starting ch-3 as stitch 1 and count in the direction the round was worked. Look at the visible stitch posts rather than their top loops, which were already used when you crocheted Round 4.
When marking each attachment point, place the marker beneath a visible front strand of the specified Round 3 stitch post. Later, you'll use that strand to anchor the brown hair tip with a surface slip stitch. Don't try to work into the occupied top loops.
Place markers in Round 3 stitches 31, 35, 3 and 6. These are the planned attachment points for hair sections 1, 2, 3 and 4, respectively. They're positioned beneath the corresponding six-stitch bases on Round 5.
Keep these markers in place until you've secured the four hair points. Don't pull the hair tightly toward the markers. The tips need to lie flat against the peach stitches without gathering the face.
Join brown yarn in the front loop of stitch 49 of Round 5.
Row 1: Sc in the front loop of stitch 49 and in the front loops of stitches 50 through 54. (6 sc)
Row 2: Ch 1, turn. Sc2tog, sc in each of the next 2 stitches, sc2tog. (4 sc)
Row 3: Ch 1, turn. Work sc2tog twice. (2 sc)
Row 4: Ch 1, turn. Sc2tog. (1 sc)
Fold the pointed brown section inward over the peach face. Keep the working loop on your hook and bring the tip to marked stitch 31 of Peach Face Round 3.
Insert your hook beneath the marked front strand of that stitch post, without entering its occupied top loops. Yarn over and draw a loop back through the peach stitch post, then pull that loop through the working loop on your hook to complete one surface slip stitch.
The slip stitch should hold the brown tip against the face without drawing the peach stitches together. If the tip cannot reach its marker without stretching, don't force it.
Keep the slip stitch relaxed so the brown point lies flat without gathering the peach stitches. Remove the marker.
Fasten off and weave in the end on the back.
Join brown yarn in the front loop of stitch 55.
Row 1: Sc in the front loops of stitches 55 through 60. (6 sc)
Rows 2 through 4: Repeat Rows 2 through 4 of the first hair section. Your counts will be 4, 2 and 1 stitch.
Fold the point forward over the peach face. Slip stitch its tip into marked stitch 35 of Peach Face Round 3, using the same anchoring method as the first hair section. Keep the stitch relaxed, remove the marker and fasten off.
Join brown yarn in the front loop of stitch 1.
Row 1: Sc in the front loops of stitches 1 through 6. (6 sc)
Rows 2 through 4: Repeat the same decreases, finishing with 1 stitch. Fold the point forward over the peach face and slip stitch its tip into marked stitch 3 of Peach Face Round 3. Keep the stitch relaxed, remove the marker and fasten off.
Join brown yarn in the front loop of stitch 7.
Row 1: Sc in the front loops of stitches 7 through 12. (6 sc)
Rows 2 through 4: Repeat the decreases, finishing with 1 stitch. Fold the point forward over the peach face and slip stitch its tip into marked stitch 6 of Peach Face Round 3. Keep the stitch relaxed, remove the marker and fasten off.
You should now have four pointed brown sections across the upper face. Each one is worked directly from the peach stitches and held down with a slip stitch.
The little points can overlap the forehead slightly. They shouldn't cover the places where the embroidered eyes will go.
If a point hangs too low, attach its tip to a stitch on Round 4 instead of Round 3. That shortens the visible fringe without changing its stitch counts.
The back loops of the 24 peach stitches should still be available along the top. Those are where you'll begin the white brim.
Now for that red Christmas hat. It's a simple triangle made with decreasing rows of half double crochet. There isn't a separate hat to attach afterward. You'll build it directly from the top of the face.
Keep the face right side up and locate the unused back loops along the upper 24 stitches of Round 5.
Join white yarn in the back loop of stitch 49.
Row 1: Ch 1. Hdc in the back loop of stitch 49, then continue working one hdc in each unused back loop through stitch 60 and stitches 1 through 12. (24 hdc)
Row 2: Ch 1, turn. Hdc in each of the 24 stitches across. (24 hdc)
Fasten off white and weave in the end.
Checkpoint: The white brim should lie across the upper face, just above the brown fringe. It should be approximately 6 inches wide at the suggested gauge.
Spread the brim gently with your fingers. It may follow a slight curve because it's attached to a round face. That's fine. Don't pull it into a perfectly straight line if that makes the face pucker.
With the right side of the peach face toward you, locate the last stitch made in White Brim Row 2, directly above Peach Face Round 5 stitch 49. Join red yarn in the top of that white stitch.
Work Red Hat Row 1 across the 24 stitches toward the opposite end of the brim, following the instructions below. Keep the face's right side toward you for this first red row, then turn after each subsequent row as directed.
Row 1: Ch 1. Hdc in each of the 24 stitches across. (24 hdc)
Row 2: Ch 1, turn. Hdc3tog across the first 3 stitches, hdc in each of the next 18 stitches, hdc3tog across the final 3 stitches. (20 hdc)
Row 3: Ch 1, turn. Hdc3tog across the first 3 stitches, hdc in each of the next 14 stitches, hdc3tog across the final 3 stitches. (16 hdc)
Row 4: Ch 1, turn. Hdc3tog across the first 3 stitches, hdc in each of the next 10 stitches, hdc3tog across the final 3 stitches. (12 hdc)
Row 5: Ch 1, turn. Hdc3tog across the first 3 stitches, hdc in each of the next 6 stitches, hdc3tog across the final 3 stitches. (8 hdc)
Row 6: Ch 1, turn. Hdc3tog across the first 3 stitches, hdc in each of the next 2 stitches, hdc3tog across the final 3 stitches. (4 hdc)
Row 7: Ch 1, turn. Hdc4tog across all 4 remaining stitches. (1 hdc)
Fasten off, leaving a tail long enough to weave neatly along the back of the red hat.
You should have a red triangle with seven rows, narrowing from 24 stitches at the bottom to one stitch at the top.
The first few rows will be much wider than the final rows, giving the hat its pointed shape. The white brim stays underneath, with the brown hair showing below it.
At the suggested gauge, the red section should be approximately 2 1/2 inches tall. Check that the tip is centered over the face.
If the point leans to one side, count the decreases. Both ends of Rows 2 through 6 should lose two stitches each, giving a four-stitch decrease per row.
Don't add a pom-pom to this particular square. The finished example has a plain red point, and keeping it that way makes the design simpler.
Before moving on: Lay the entire elf flat. The hat, white brim, brown bangs, peach face and pointed ears should now read as one connected character. The only remaining crochet is the green background.
Now we'll turn our little elf into a granny square. The green yarn connects directly to the elf, so there's no separate background square to sew on afterward.
We're going to make a chain framework first, then work the granny clusters into it. The upper sections beside the tall red hat will be longer than the sections below the ears. That gives the hat more room while keeping the same number of granny groups along each completed side.
Lay the elf flat with the right side facing you and the hat pointing upward.
Place a marker at each of these locations:
Keep these four markers in place while working the foundation. They tell you exactly where the green chains connect to the elf.
Use the same green yarn and hook you plan to use for the background.
Make a temporary chain of 16 stitches and measure it without stretching. At the suggested working gauge, we're aiming for approximately 3 1/2 to 4 inches.
The foundation uses three chain lengths. A 16-chain section should measure approximately 3 1/2 to 4 inches, a 20-chain section approximately 4 3/8 to 5 inches, and a 24-chain section approximately 5 1/4 to 6 inches. These measurements are calculated from the suggested chain gauge, not taken from a finished sample.
If your chains are considerably shorter, try the 5 mm hook for the foundation chains. Keep the stated chain counts because the granny-cluster placement depends on them.
Undo the temporary chain before beginning the actual foundation.
Join green yarn with a slip stitch at the marked tip of the red hat.
Section 1: Ch 20 toward the upper-right corner. Ch 2 and place a marker around those two corner chains. Ch 24 toward the right ear. Slip stitch into the marked ear tip.
Section 2: Ch 16 toward the lower-right corner. Ch 2 and mark those corner chains. Ch 20 toward the bottom of the face. Slip stitch into the marked space between Peach Face Round 5 stitches 30 and 31.
Section 3: Ch 20 toward the lower-left corner. Ch 2 and mark those corner chains. Ch 16 toward the left ear. Slip stitch into the marked ear tip.
Section 4: Ch 24 toward the upper-left corner. Ch 2 and mark those corner chains. Ch 20 toward the red hat tip. Slip stitch into the same stitch where you began.
Fasten off green.
Foundation count: Four 20-chain spans, two 24-chain spans and two 16-chain spans.
That's 80 + 48 + 32 = 160 connecting chains. Add four marked 2-chain corners for another 8 chains.
Total: 168 chains, plus the attachment slip stitches.
Each complete side contains 40 foundation chains:
The ear attachments are lower along the side edges than the hat attachment because the red hat extends well above the face. Each corner is formed by a marked ch-2 space.
Checkpoint: Spread the marked corners into a square around the elf. The upper-right and upper-left corners should be level with one another. The lower corners should also be level.
Make sure the hat tip, ears and chin aren't being pulled out of shape. If one attachment puckers, correct the foundation-chain tension before working the next round.
Join green yarn beneath the marked upper-right 2-chain corner space.
Ch 3 (counts as the first dc), work 2 dc into the same corner space, ch 2, then work 3 more dc into that corner space.
You'll now work around the foundation in the same direction, placing granny clusters into the chain spans.
Each granny cluster consists of 3 dc worked into one foundation chain.
Use these exact stitch locations for each chain-span length. Always count from the end of the span nearest your hook, in the direction you're working:
Don't work into the attachment slip stitches at the hat, ears or chin. Skip those stitches and continue into the next chain span.
Work around the square as follows:
Right side: Work 6 groups into the 24-chain span leading to the right ear. Skip the ear attachment slip stitch. Work 4 groups into the following 16-chain span. At the lower-right corner, work (3 dc, ch 2, 3 dc) beneath the marked corner chains.
Bottom: Work 5 groups into the 20-chain span leading to the chin. Skip the chin attachment slip stitch. Work 5 groups into the next 20-chain span. At the lower-left corner, work (3 dc, ch 2, 3 dc).
Left side: Work 4 groups into the 16-chain span leading to the left ear. Skip the ear attachment slip stitch. Work 6 groups into the following 24-chain span. At the upper-left corner, work (3 dc, ch 2, 3 dc).
Top: Work 5 groups into the 20-chain span leading to the hat tip. Skip the attachment slip stitch at the hat. Work 5 groups into the final 20-chain span leading back toward the upper-right corner.
Join with a slip stitch to the top of the beginning ch-3.
Round 1 count:
Remove all four corner markers and the four attachment-point markers once the first green granny round is complete.
Checkpoint: Each side should have 12 granny groups between its two corner spaces, counting the corner group at each end. Count all four sides before moving on.
Slip stitch across the next two double crochets and into the first corner ch-2 space.
Ch 3 (counts as the first dc), work 2 dc into the same corner space, ch 2, then work 3 more dc into that corner space.
Work 3 dc into each open gap between neighboring granny groups along the next side. There should be 11 gaps between the groups on that side.
At the next corner, work (3 dc, ch 2, 3 dc) into the corner space.
Continue around the square, working 3 dc into each ordinary gap and (3 dc, ch 2, 3 dc) into every corner.
Join with a slip stitch to the top of the beginning ch-3.
Round 2 count:
Lay the square flat before adding the final edging. Check that both upper corners match, both lower corners match and no side has an extra granny group.
Join green yarn in any corner ch-2 space.
Work (sc, ch 2, sc) in that corner.
Work one sc in each dc along the next side. There should be 39 dc between neighboring corner spaces.
At the next corner, work (sc, ch 2, sc).
Repeat around all four sides, working one sc into every dc and (sc, ch 2, sc) in each corner space.
Join with a slip stitch to the first sc. Fasten off.
Edging count: 156 sc worked into the double crochets, plus 8 corner sc = 164 sc total, with four ch-2 corner spaces.
Lay the square on a flat surface with the elf facing upward.
The hat should point toward the upper edge, the ears should extend toward the sides, and the chin should sit above the lower border.
The green border should have equal stitch counts on all four sides. If the square has uneven edges, check the foundation chains and granny-cluster counts before trying to fix it with blocking.
Pay particular attention to the green clusters around the red hat and below both ears. The longer upper sections should give the hat room without pulling it downward. Check the shorter sections below the ears as well. They must reach their corners without stretching, gathering the face or lifting the green framework. If they cannot, the foundation fit needs correction before adding the granny rounds.
If an open space looks too large or the border pulls against the elf, don't simply add extra granny clusters. That would change the stitch totals on one side. Check the chain lengths and attachment positions first.
Measure the completed square before making additional matching blocks. This calculated construction still needs to be checked against a physically completed square to establish the exact finished measurement and appearance.
The elf is almost finished. All he needs now is his sleepy little expression and a bit of tidying up.
Thread your yarn needle with dark brown or black yarn.
Lay the square with the right side facing upward. Use the original center of the peach face as your guide.
Position the eyes on opposite sides of the center, approximately over the third and fourth face rounds. Keep them the same distance from the center.
For the first eye, bring the needle up through the peach stitches at the outer end of the eye. Make a short diagonal stitch upward and inward, then another short stitch across the top of the curve. Finish with a short diagonal stitch downward and inward.
The three stitches should form a small upside-down U, like a closed, smiling eye.
Repeat on the opposite side, reversing the direction so both eyes curve toward the center.
Keep the embroidery relaxed. Pulling the yarn too tightly will draw the face inward and distort the crochet stitches.
Use the same dark yarn to make a small curved smile beneath the eyes.
Bring the needle up about one round below the face center. Make two or three short stitches that form a shallow U, with the ends slightly higher than the middle.
Keep the smile centered between the eyes. It doesn't need to be large. The finished example has a simple expression, and that's all we're trying to make.
Fasten off securely on the back and weave the yarn ends into nearby peach stitches.
Turn the square over and check the back.
Weave every loose yarn end through several stitches of the same color. Change direction when weaving to help keep the ends in place.
Don't pull the woven ends tightly, especially behind the face. You want the peach circle to remain flat.
Check the tips of the ears, the brown hair and the red hat to make sure the finishing ends are secure.
Lightly dampen the square if your yarn permits wet blocking, then lay it flat on a blocking mat.
Pin the four corners into a square. Straighten the sides and arrange the elf so the hat points upward and the ears spread evenly.
Let the square dry completely before removing the pins.
Follow the yarn manufacturer's care directions. Acrylic yarn may need a different blocking approach from cotton or wool.
Take one last look at the elf. You should have a peach face, two pointed ears, four brown bangs, a white brim, a red triangular hat, embroidered closed eyes and a smile, all surrounded by green granny clusters.
Check that the finished square lies flat, its corners are reasonably square and no yarn tails are loose.
If you're making several squares for a blanket, I'd finish and measure this first one before starting the rest. That gives you a reference for keeping the whole project consistent.
One elf square makes a cute little Christmas decoration, but you can use the same pattern for quite a few projects. The main thing is deciding what you're making before you crochet a whole stack of them.
If you're planning a blanket, you could alternate elf squares with plain green, red and ivory granny squares. That gives the elves room to stand out instead of packing a different character into every block.
If you're making the blanket for a baby, keep loose blankets out of an infant's crib or other sleep space. It can still be a lovely Christmas keepsake or a blanket for supervised use outside the sleep area.
I'd use the same yarn weight and hook throughout the project. My coordinating Christmas granny square blanket uses an approximately eight-inch base square, so don't assume these larger elf squares will match it without adjustments. Make and measure one finished elf square first, then work your plain companion squares to those same dimensions.
You can also mix this design with other projects from the free Christmas granny square patterns collection, provided you adjust the finished sizes to match.
Four elf squares arranged in a two-by-two layout could make a festive pillow front. Join them with a simple seam, then add a plain crocheted back or fabric backing.
For a smaller pillow, place one elf square in the center and work additional plain granny rounds around it until the front reaches your preferred size.
One elf square could also become a little wall hanging. Add a crocheted hanging loop along the upper edge and use the square as a holiday decoration.
It's a nice option if you want to make just one elf without starting a large blanket.
If you want a row of matching elves, make each square with the same yarn, hook and stitch counts. Block them to the same measurements before joining.
You can whipstitch the outer edges together with a yarn needle, matching the stitches on neighboring squares. Keep the corners aligned and avoid pulling the joining yarn tightly.
Or use a crocheted joining method if you prefer a more visible seam.
For more matching Christmas projects, browse the free crochet elf pattern collection. It includes other elf projects that can be made alongside this granny square.
No. The face is crocheted first, then the ears, hair and hat are worked directly onto it. The green background connects to the finished elf at four points before the granny clusters are added. You don't make a separate elf appliqué and sew it onto a completed square.
I'd call it intermediate. The face uses ordinary double crochet increases, and the hat uses half double crochet decreases. The trickier parts are shaping the ears and hair, then keeping the green foundation evenly tensioned around the elf. If you've already made granny squares and know how to increase and decrease, you'll have most of the stitches you need.
Those points hold the green chain foundation around the elf without requiring a separate backing square. The hat tip, both ear tips and bottom of the face establish the top, sides and bottom of the design. The marked chain corners give the granny rounds their square shape.
First, check the stitch counts in the red hat. They should decrease from 24 to 20, 16, 12, 8, 4 and finally 1 stitch. If those counts are correct, gently shape the hat while blocking. Avoid pulling hard on the tip.
Yes. You can work additional conventional granny rounds around the outside after completing the second green granny round. Each new round adds one three-double-crochet group between the groups on each side, with (3 dc, ch 2, 3 dc) in the corners. The larger version will differ from the featured example because it will have a wider green border.
Of course. You could make a green hat with a red brim, or use ivory for the background. Keep the yarn weight the same across the square, though, or the different sections may not lie evenly together.
No. The eyes and mouth are embroidered with yarn. That's enough to give the elf his cheerful expression, and it keeps small plastic pieces out of the design.
Use the same yarn, hook and stitch counts for each square. Measure the first completed and blocked square, then compare the others to it before joining. If one is noticeably larger, check your tension and stitch counts rather than trying to stretch the smaller squares to fit.
Once you've finished your first elf, you'll have the stitch counts and construction sequence ready for another. You can make a matching set without having to figure out the shaping all over again.
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