I have a large stack of cloth napkins for everyday use, mostly sourced from thrift stores and flea markets. I love them for their uniqueness and funky charm and enjoy mixing and matching them to create a lively, colorful table. But when I want a more refined, elegant feel for a nice dinner party, there's nothing like a simple linen napkin, preferably in a neutral shade of off white or beige.
I'm still informal enough that I don't want my linen napkins to be perfectly starched and ironed. I like it when they're freshly washed and (hopefully!) hung out to dry in the sunshine. Just fold them into a rough rectangle and tuck them next to a simple white plate. So elegant, yet relaxed.
Linen napkins can be expensive and can run as high as $50 each if they are made made with high quality linen. Etsy is a good source for less expensive ones but you can also make your own quite easily. If you're sewing skills aren't up to hemming, try just sewing a line all the way around the square, about 1/4" from the edge. The edges will fray after a few washes, but that's also a nice touch.
Related: Home Hack: How to Sew Napkins and a Table Runner
(Image: Adler & Co.)
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Linen's wonderful for napkins but I've also found that beautifully patterned 100% cotton dishtowels are nice too. I'm regularly asked where I got such large lap napkins and diners are surprised when I say it's a dishtowel (reserved for use only as napkins):
http://tinyurl.com/73gevtu
Flea markets also have antique linen napkins for great prices. I have inherited loads & loads of them & love to use. They wash in gentle cycle & hang dry. Love my antique linens!
Like @RUCY, for every day use, I use the dish towels reserved for napkins. They are white with a blue stripe down the middle. My friend gave me a huge stack as a gift & they are great for parties, too!
Pottery Barn has a really well designed linen napkin that washes extremely well, releases food and stains, and the colors stay true. And they aren't too small like *so* many napkins.
http://www.potterybarn.com/products/linen-hemstitch-napkins-place-mats/?pkey=cplace-mats-napkins
i love linen napkins. there is a french patisserie in the city called balthazar that had the perfect natural linen napkin with single provencal red stripe.. i searched high and low for them and finally saw these, http://www.sundancecatalog.com/product/code/48872.do which i received as a christmas present... but they were huge (20x20?) and despite many washings, felt like burlap. so they became couch cushions which look really great and i plan on blogging about soon. :) but still, i am perfect-linen-napkin-less... at this point i may just call balthazar and ask who their perfect-napkin source is.. or buy fabric from linenbyinga on etsy (whose dishtowels i pinned here http://pinterest.com/pin/40743571598602641/) and make my own. anyway, i look forward to seeing everyone's linen napkin resources! maybe i will find my linen napkin soulmates.
I have lots of vintage linens and I have some I bought from Toast UK which look like the ones pictured.
I also have these they are inexpensive, look like my expensive ones and wash up nicely. I have a few dozen of the dinner size and cocktail size. I use them daily.
http://bumblebeelinens.com/dozen-white-hemstitched-linen-dinner-napkins-inch-p-133.html
Cloth napkins are the very nicest "quality of live" indicators.