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The Scuddles Extra Large Picnic Blanket was just the thing. I purchased the smallest one and it turned out really good for my daughter.
What I found that I liked about this blanket was that it had a comfortable cloth on one side and a smooth polyester material on the other, and a bit of foam inside the blanket. The polyester side is smooth so that no leaves or grass will stick to it and is easy to clean off. The cloth and foam side makes this blanket more comfortable than a simple towel.
To fold it up, just fold the sides toward the middle where the flap is, then fold toward the flap and secure with the velcro on the flap. Another blanket that I have was very tricky to fold and secure because it was guesswork as far as which direction to fold in so that the cloth straps will loop correctly.
What I really like about this when I first received it was how light it was. It barely adds any weight to my daughter's backpack when she has this blanket in it. The only tricky thing is that the whole thing is a bit thick when folded up, making it take up a lot of room in the pack. I think a shoulder strap might have worked well for it.
Overall, this is a good blanket that is quick to deploy and quick to clean up. Good quality overall.