Towels Yes, there is a right and a wrong way to fold towels, especially larger bath towels. This technique, as per HGTV, ensures that larger towels dry fast and that towels can be properly stacked to maximize storage space. Start by standing up and holding the towel in front of you by the upper corners, so that it hangs down the length of your body. Then fold the towel in from one side 1/3 of the width, and then repeat on the other side so you have 3 folded layers. Then fold the towel down in half, and then again in half, so your folded towel resembles a square.