The present invention is directed to a sewing basket for storing thread, pins, needles, scissors, buttons, snaps, measuring tapes, and other sewing tools and accessories. The present invention is further directed to a novel method of collapsing the size of the sewing basket for shipping, storage, and other purposes. The sewing basket of this invention includes a base, an upper frame and a collapsible side walls connecting the base and the upper frame. The basket may switch from a collapsed position with the side walls collapsed bringing the upper frame in proximity to the base and an extended position where the side walls are maintained in an extended position with a support.