No matter how many reusable bags I have I still somehow end up bringing a few plastic bags home. I have used a few options for organizing them in the past however nothing is better than a hanging fabric holder. Thanks to a tip from Martha, here is a quick and easy way to make your own holder simply using a dishtowel. 
Began with a large dish towel and a piece of twill tape. Twill tape can be found in the trim section of your fabric store and is very inexpensive. I happen to have a scrap piece of twill ribbon that once wrapped a Pottery Barn Blanket that worked perfectly for this project.
Folding the dishtowel in half lengthwise {wrong side out} pin together the side opposite from the fold. I wanted a larger bag holder so I made the width 8 inches from the folded edge, however, you can change the measurements according to the size dishtowel you use. It is ok if the outer edges are off as long as the top and bottom hems are even.
Using the hem of one open end as a guide, pin your twill tape on to each side of the dishtowel to create the hanger. Sew a straight seam the length of your dishtowel to create your tube {the seam that was previously pinned ~ again, mine measured 8 inches from the folded edge} and stitch your twill tape in place. Trim access fabric. 
To create the elastic bottom for the holder, simply make a tiny cut in the existing hem of the dishtowel; one on each side of the tube. Using 1/4 inch width elastic measure and cut a piece that is 1/2 larger than the width of your tube {my elastic strip measured 8 1/2 inches long} Attached a safety pin to one end of the elastic and slide through your first cut, threading through the entire hem around the bottom until you reach your second cut on the opposite side. Tie the ends of the elastic together to gather the bottom and turn your bag right side out.
This took just about 10 minutes to make and costs me less than $2.00. 
Plus I got to recycle my Pottery Barn Ribbon ~ in a good way. Hope you have a great weekend! Enjoy! 
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What a great idea!!! Mine are next to the laundry machines and always on the floor just out of reach!
That looks so great! I will have to make one of those stylish bag holders! Thanks! Hugs, Cindy S
So cute! And, obviously very practical! Thanks for sharing.
Rachelle
You are so creative — you have now made plastic bag storage look attractive. Great idea!
I have been wanting to make one of these FOREVER! You make it look easier than I thought…thanks for the instructions!
Congratulations! I have awarded to a Beautiful Bloggger Award! Come on down for all the details! Thanks for being so inspiring.
Ooh I love this! Thanks so much, I’ll be linking.
This turned out great – very creative. This is much nicer than my plastic holder that I have to have hide under the cabinets because it is such an eyesore!
Chelsea
What a great idea and pretty! I think I’ll have to give this a try! Thanks for the inspiration
Wendy
That is awesome! I need one of these.
THANK YOU for the tutorial! My parents bought me a plastic bag holder, but I accidentally left it in my old house when I sold it. I’ve missed it terribly! This is so cute! I’ve never considered making one myself and I love that it’s a simple pattern.
Love how you made this.Thank you for sharing it with all of us!
So cute! Yours is even better looking than the ones I’ve purchased! I love that they are made of dishtowels – so affordable, easy and washable! Thanks for sharing!
I love organizing stuff. However, the main matter is that I did not have affair enough in order to put the organized things.
I think this issue is about to end since you post such a great craft
I use just a paper towel cardboard holder for my plastic bags, now you gave me an idea to decorate it and hang it up, it’s usually stuck in a drawer hiding, but now it can be shown to the world! Thanks! Visit Mel’s Cabin any time, I’d love to have stop by.
Made this project today and it was super easy. Thanks for the great directions. I linked to you on my site.
http://addicted2tutes.blogspot.com/2011/04/plastic-bag-storage.html
Andrea
How cute! I had been using an old milk jug with the top cut off to store my plastic bags—serviceable but not cute. Guess what I will be making today? Thanks for the great idea!