The Adaptable Gift Bag is a bag made of relatively opaque, stretchy material, not paper or netting, so that it can fit over various sizes and shapes of gift items and present a smooth, attractive appearance. The Adaptable Gift Bag is typically made of a single sheet of material folded over and sewn along one or two sides so that it has one open end, but in alternate embodiments it could have two open ends. The open end can be closed around the gift by gathering and tying with traditional ribbon or cord, by attaching a drawstring, or alternatively can be twisted and stretched back over the gift for a unique finished appearance. The Adaptable Gift Bag may be lined (e.g., with a different material), may include a zipper for easier removal from the gift item, and/or may include strategically placed elastic bands in its interior for a better fit (esp. at the corners). Using a shimmery, sparkly, or iridescent material provides a festive appearance for the finished gift.