First, let’s be clear — these are my definitions, and they may not match industry standards.

I think of templates as something you trace around the outside of, while stencils are something you trace inside of.

Why did I make both?
Honestly — because the cutter does it automatically. So why not use both?

There are a couple of things to note.

When you trace a template, the traced shape ends up a little larger than the original, so you’ll want to cut inside the traced line.

When you trace a stencil, the traced shape ends up a little smaller than the original, so you’ll want to cut outside the traced line.

Aside from the size difference, why would you choose one over the other? A lot of that comes down to personal preference. Some people find it easier to quickly trace inside a shape. Others prefer tracing around the outside.

Personally, I find tracing inside the shape easier because my marker is contained, and I can move a bit faster.

Stencils and templates are also useful for more than just appliqué pieces. You can use them to:

  • play with quilt layout ideas

  • sketch embroidery designs

  • experiment with new motifs

And if you’re feeling adventurous, you can even combine them to create entirely new designs.

A Note About Markers

When it comes to marking, I almost always use a removable marker.

My go-to choices are:

  • Chalk for dark fabrics

  • Air-erase markers for light fabrics

Occasionally, I’ll use a ceramic marker for lines I don’t want to disappear — especially when I’m working through layout or design ideas.

There’s no right choice here. Use what feels best in your hands and works well with your fabric.