A campfire blanket is simply an old blanket worn around a campfire to keep warm. Over the years Scouts have used campfire blankets as a place to keep badges that do not belong on their current uniform. These could be badges from events attend or badges traded with other Scouts at Jamborees and other events. For many, the campfire blanket has become a way to show one's personal history in the Scouting Movement.
Campfire Blankets are a lot of fun for youth and adult members to create and show off. They are highly individual and can be as simple as a poncho or a more elaborate hooded cloak. They type of blanket used is often discussed, with many recommending wool because it is more traditional and because it is more fire resistant. However, synthetic fleece is inexpensive, light weight, and easy to sew on.
Some articles, patterns, and ideas:
The Leader, Aug 1981 "Campfire Robes"
The Leader, May 1995 "Campfire Blankets - A Canadian Tradition"
The Leader, May 1996 "Campfire Blankets and Sweaters"
The Leader "How to Make Campfire Robes" (Date unknown)
This would make an amazing campfire blanket: Wrap Up in Style With This DIY Wool Blanket Coat