The present invention provides a placement holder for embroidering patches. The placement holder fits inside an embroidery hoop for use in an automated embroidery machine and contains a cutout section in the shape of the patch. The patch is placed inside the cutout section of the holder, which aligns the patch with the needles of the embroidery machine. The placement holder allows the patch to be properly aligned without the need for making a running stitch and securing the patch within the bounds of the running stitch with adhesives.