You can't find cloth, unless someone has dropped it, but you can craft it with 10 pieces of cotton in Treeton. To find cotton, look for whitish bushes, and pick up the cotton.
- ScarletStorm, Palomino Server : )
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Its in the GeneralStore on GlacierTon
On Horse Isle on the pathway you use when walking to Hoof Isle
you can find it on any prairie-based isles. answered by FriesiansForever
On most isles, any isle with rocks! (I find Meadow Isle has a lot)
try a horse isle 2 quest help website. that's were i get all my answers from.