I've had the same thing happen. When I buy flannel I wash it without softener and I dry it in the dryer. If it pills, then I won't use it. My best luck has been with Joann's Snuggle brand - they also have a brand call Nursery that has done well for me I can't remember the name of the one I get at Beverly's Fabrics - it's marbled and I like it a lot.