The present invention provides an improved method and computer program product for quilting and embroidering fabric. The method comprises securing a quilt sandwich of top layer fabric, batting and backing fabric in an embroidery hoop and attaching said embroidery hoop to an embroidery machine. The user retrieves a digitized embroidery file that is fed into the embroidery machine. The digitized file instructs the embroidery machine to stitch the quilt layers together according to a predetermined stippling pattern and to stitch an outline for an appliqué. After an appliqué fabric is placed over the outline, the digitized file sews a tackdown stitch, after which appliqué enhancements or additional layers of appliqué may also be stitched. The quilt is then removed from the embroidery hoop and the appliqué and quilt are trimmed.