This is how my version of a fabric garland turned out, I really like how it looks, I did mine pretty full and tight, but you could make it less full and I think it would still look great!
I started with a 50 count white strand of lights ($2 at Walmart), and I doubled it, so my garland wouldn't be quite so long.
I used 3 different colors of twin size flat sheets from Walmart ($5 each), and cut strips about 1 1/2 inches wide and about 12 inches long, it took about 1/4 of a sheet in each color. My rotary knife, mat and ruler, made this go super fast!
Then I just tied them on the light strand, alternating, like I said, you could do yours a little more spaced out. When I first made mine in these pictures, I hadn't decided to use blue in it yet, it was a pretty big pain to add it later, let me tell you!
I shook mine to fluff it, after I hung it, since it was at Christmas time, I put snowflake ornaments on it too, I just tied them on, so they could come off after Christmas. They were 10 for $1 at the Dollar Tree.
All things considered (kiddo interruptions), this project took less than 2 hours, start to finish.