The towel packing machine allows for quick-to-market process where folding, inserting, closing and forming of sacks “bags” are completed in one, fast-paced process (high-speed) and that incorporates various (standard) woven-type bags or preformed pouches, as well as multiple configurations based on belt speed, bag length, and sealing temperature setting for a high degree of control over the density and appearance of the towel bundles. The multi-function, touch-sensitive operator interface assists operators to quickly set up the machine (recipes) and changeover to different products with quick changeover due to the use of servodriven axes that provide for accurate towel alignment, folding and sealing. The machine also has a photocell system (tube) that detects the presence of towels in the machine and the presence of an empty bag, which automatically stops or resumes the machine, respectively, to prevent packing of mispacked towels.