A device for dispensing towels comprises a container, a sepearet area and a chamber. The container, such a bottle contains liquid, such a hand sanitizer. Then a separate area provides for housing a plurality of dry compressed towels, in the form of tablets. The chamber receives the dry compressed towels and the liquid. A trigger mechanism provides for selectively introducing at least one dry compressed towel and liquid into the chamber. Actuation of the trigger mechanism causes the dry compressed towel to enter the chamber and to be exposed to the liquid so as to be moistened or wetted, thereby being decompressed or expanding. The user can then retrieve the ready to use towel from the chamber.