The blanket stitch makes an attractive finish for a knitted garment or afghan. The stitching provides a smooth edge. Blanket stitching is an alternative to crocheted edging on a cardigan, shawl or knitted blanket. This stitch is also used in embroidery, most often on the edges of blankets, hence the name. For the best results, choose a yarn that's the same weight as your garment. Select a contrasting color so your decorative stitching shows up.
Cut an 18-inch section of yarn and thread it into a darning needle. Knot the end of the yarn.
Start at one end or corner of the garment. Insert the needle in the wrong side of the garment, as close to the garment edge as possible.
Insert the needle ½ to 1 inch from the edge of the garment and the same distance to the right from where the needle previously exited the garment. Bring the needle through to the wrong side of the garment and angle the point so that the needle rests against the back side of the garment with the point at the edge of the garment directly beneath the place where you inserted the needle. Catch the loose yarn under the point of the needle and finish pulling the needle through the garment. You've now stitched a right angle with the yarn.
Repeat step three so the yarn forms a series of right angles edging the garment. Insert the needle on the right side of the garment, over and up from the previous stitch, and bring it out from under the garment, catching the loose yarn under the needle each time. Work from left to right.
Finish the line of stitching by catching the yarn as if to continue to the next stitch, but instead of inserting the needle up and over from the current stitch, bring the needle to the back of the work and sew two stitches very close together near the edge of the garment. Weave the yarn back through these stitches, then cut off the excess with scissors.
Vary the length of the "legs" of the stitches for a more decorative look.
At corners, make a stitch at a 45-degree angle into the corner of the garment and continue as before on the next section of the garment.