Originally Posted by JanetM
I have never tried this, so I can't assure you that it will work. I wouldn't use a dense design, nor would I hoop the felt. I would hoop the stabilizer and use temporary adhesive spray (Sulky KK2000), or the basting function to adhere the felt to the stabilizer. I would also use a topper to keep the stitches from sinking into the felt.
Felt works just fine. One year I made gift tags/Christmas tree ornaments on my embroidery machine using the craft felt rectangles you can get at Michaels, Hobby Lobby, etc. Hooped the stabilizer and used spray adhesive to afix the felt. Didn't use a topper and had no problem with the stitches sinking in. They turned out great. Slid another piece of felt under the hoop when it stitched the outline so that the backs were nicely finished.