A method of manufacturing a cake-shaped decorative accessory made of a towel by setting a mount, which becomes a framework for forming a towel cloth in a cake shape, on a towel cloth, and folding the towel cloth together with the mount into a cake shape. More specifically, a cake-shaped decorative accessory made of a towel is obtained by: setting a polygonal shape mount, which has a folding piece extending from each one of sides thereof, on a towel cloth which is larger than the mount; folding the towel cloth together with the folding piece of the mount to form a folded item; and placing the folded item in a cake cup with a top face portion of the mount facing above, thus forming the folded item into a cake shape.