I use a wash away stabilizer when I embroidery on towels. I put it in the hoop on the underneath side and also on top to help control the loops in the terry cloth. This is my "experience" tip for you...use TWO threads of the same color thru one needle on top and stitch thru all the layers of the stabilizer front and back and the towel. The 2 threads has much better coverage than one and will stitch as one thread because you are running them thru the same needle. It really makes a big difference in the way the thread covers the terry cloth. I did monagramed towels last year for my kids and they turned out really well.