Making a poncho from a blanket is a good way to both recycle a piece of home décor and create a new piece of clothing. It gives the poncho a personal touch and emotional significance. A blanket is also a good piece of material to make a poncho from because it is a large single piece of fabric, so your poncho will not require seaming.
Measure the collar of a shirt that has the same size neck you want your poncho to have. Measure and mark a circle in the center of the blanket that is the same size as the collar.
Decide how long you would like the poncho to be, and mark a square of the specified width, using the circle as the center.
Cut out the circle about a 1/2-inch in from the markings, and the square about a 1/2-inch out from the markings. This allows enough fabric for the hems.
Fold the edges of the fabric in at the markings and pin into place. Sew the edges either by hand or by machine.
Try the poncho on to make sure no adjustments are necessary, and make the adjustments if they are needed.
If you want to add fringe, use a hole punch to make holes at even intervals around the outer edge, then tie fabric strips about 6 inches long through the holes. You can shorten the strips for a shorter fringe.