A towel system with an adjustable padded headrest for laying over a portable lounge chair or directly on a ground surface. A rectangular towel is disposed on a lounge chair and secured to the lounge chair via attachment fasteners inserted into a hole of a row of attachment holes. A water-resistant pillow pouch is disposed on the towel. A pillow is removeably located inside the pillow pouch. The towel may alternatively be placed directly on a ground surface and secured to the ground via stakes inserted through apertures disposed on each corner of the towel.