Helen Anne Designs What's on the Needles: How to Make a Tassel - easy to follow instructions with pictures.

Making tassels can be fun and they are so useful for knitting projects or adding to a bookmark or card. To make your own tassel for the instructions below, you'll be surprised at how easy it is.

Things you'll need:

String, cord or yarn in a color of your choice. The string used here is crochet cotton, available in most craft stores and in many different colors.
Scissors
Stiff Card or ruler
Tapestry needle or large sewing needle.

Steps
Cut stiff card to the size you want (I used 3" for adult) or use ruler as per your preference. If in doubt start with a card that is a little bit wider than the size you want as you can always trim the ends shorter later.

Wrap the string, cord, or yarn around the ruler or card several times (I wrapped 22 times for 8ply yarn, but use personal preference). The number of loops, along with the thickness of the string, determines the thickness of the tassel, so wrap until it looks like the size thickness of tassel your wanting to make. Remember there is two sides here to consider.

Cut the end of the string off the loops and cut a second piece of a generous length, perhaps a yard (90cm) or more. Fold this second piece in half.

Thread the folded end of the second string under the loops and twist. There should be no need to use a needle. You should have a short loop on one side and two long tails on the other side.

Pull the two long tails through the short loop.

Tighten this knot snugly by pulling on the two long ends. Then slide the tassel off the ruler or card.

Thread both loose ends through a large needle

Double the two loose ends, leaving about a 4 inch (10 cm) loop.

Push the needle through the top of the tassel and out the side.

Wrap free ends several times around the tassel, a little ways down from the first knot. Wrap tightly, and aim for even loops, forming a small, round ball.