I can't remember where I saw this idea to turn them into mug rugs. The fabric is quite thin so I folded them in half and cut off the corner embroidery in a square about 5 1/2". I added strips around the sides to coordinate with the embroidery.
And now a nice pair of mug rugs and I know just to person to send these to. Of course, these could be used in a wall hanging instead, or even a baby quilt, or tote bag.
Update: Thank you all for replying and wanting to recycle! All the hankies are spoken for and will be in the mail today.