This article in CRAFT calls Furoshiki “wrap that’s as good as the gift.” That pretty much says it all! Furoshiki is the Japanese tradition of wrapping things in fabric (a little history here). You can buy some pretty neat cloths made specifically for this purpose here, but of course you can always just use fabric from your stash. Or a special hankie, or a scarf. I love the thought of being able to use every part of a gift, no wadded up paper balls cluttering things up. I’ve both given and received gifts wrapped in fabric, and it’s gone over very well every time.
You might have already seen the Japanese government’s handy and cool-looking diagram showing how to wrap all sorts of things furoshiki-style, but I’d be remiss not to link to it here.