If you have a cute edge on your napkin, like this one does, place it like I have in the photo in order to have the edge be the edge of the bunny’s ears.
Fold both ends of the rectangle down along the center line, as shown.
Then take the bottom corers and fold them up to the center
to form a square.
Fold the corners one more time, as shown below:
to form a kite shape.
Then flip the entire thing over. Once you’ve done this a few times, you won’t need to flip the whole napkin over for this next step, you can just reach behind and do this part, but for now it’s easiest to show this way. Just take the top of the “kite” and fold it over like this:
And then flip back to the other side once again. Almost done!
If you have a particularly slippery or thin fabric that’s not staying wrapped up like this, you can tie a piece of ribbon or twine around that folded edge. Some people like to do decorative ribbons with little poofs for cotton tails. I just fold them and leave them as is. When you flip the napkin over it will look like the photo below left:
If you’re prepping ahead of time for a meal, just leave all of your napkins like that and store them until you’re ready to set the table. When that time comes, just use your hands to separate the bottom part for the little face and poof out the ears however you like.