Can felt fabric be used in a baby quilt?

Yes it can, if you prewash your felt shrinkage will not be a problem. The idea that some people are allergic to wool used in felt is largely a misconception since it is made from the same fiber composition as human hair, wool felt Allergies are actually rare, irritation from wool should not be misconstrued as an allergy but rather a low quality wool.

If your looking for something softer I would highly recommend a wool rayon blend felt available atwww.feltandcraft.com. NEVER EVER use acrylic or eco-spun, it is incredibly dangerous in the case of a fire because it melts very easily and will actually melt into the skin causing terrible burns, that's why acrylic has to be treated before it can be used in children's PJ's.