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crocheted plarn bag by Thoughtful Rose, she used 1" loops of plarn, and a size H crochet hook. Tight, dense stitches are the key to a plarn bag that won't stretch out of shape (that, and crocheting through both loops).

crocheted plarn (plastic bag yarn) tote bag

How to Make Plarn & Crochet a Tote Bag

Plarn baskets--using old plastic bags as "yarn" to crochet storage bins!