Did you see this already? Meg of Elsie Marley had a kids clothes week challenge recently. There's lots of great inspiration and tutorials for outfitting the babes and kids in your life.
A few projects caught my eye -- the 90 minute shirt, adorable tea towel pants, and a smocket (via Mayfly.) Oh, and this itty bitty baby dress.
And this isn't something that a kid can wear exactly, but check out the how-to for a neck pillow softie. Brilliant!