Well for a start Sarah I would cut it right up close to the stitches. You've got quite a bit still there to remove. This is the inside of the garment as I can see the band on the neck has stitching visible. Love Chris

The best way I have found is to use fusible polymesh as your stabilizer. I really holds the shirt in place and I have no puckering on the front and you can leave the back side as is or trim it down. Good luck. Hugs. Nan W

Sarah I use cut away a lot and have never had it do this way for me. Don't have any idea why. I do cut mine closer to the embroidery than you have. I'm only guessing but could it maybe be the brand you purchased?. Hope someone can tell us why this happened. I would really like to know /Lillian

That is a dense design. I usually use polymesh cut away and with the design you have chosen, I'd have used 2 pieces and maybe even floated a tear away underneath. Thin t-shirt material must have compensation (such as cut away) underneath to keep from being pulled inward to the center of the design.I would trim more closely after I clipped up to the edge of the design "fringing" the cut away. That will release some of the tension.

I have had some puckering with cutaway at times. I TRY to remember to give it a good shot of steam before using it. I think it may draw up when ironed. Try that on a sample. But I usually use the iron on thin stuff, then tear away.

Sarah, I agree with Chris (pennifold) that you should cut more of the cutaway off, which will alleviate quite a bit of the wrinkles and bulk around the design. When I first saw the picture of the design and cutaway stabilizer, I thought it was on the top side of the t-shirt fabric, but Chris stated she thought it was on the underneath. If this picture is the outside of the shirt, the cutaway should be underneath the fabric and trimmed closer. The rainbow design is very nicely stitched.
Hugs, Angel

HI Sarah, at first I thought this was the front of the shirt because the stitches show the colors so brightly. My thought is your stitches are getting to much of the top stitches on the back. Always when I get my machines back from being tuned up, they only show a small amount of color from the top stitches on the back. Or, maybe it's that darn tension too tight. The back shouldn't look so pretty. That's my 2 cents worth. I use cut away and never have this problem and I use cut away most of the time.

I have cut right to the stitches and ironed on a backing. I will post on projects when I have finished another t shirt. It is much better now. Thank you for all your help

Sorry you have having difficulties with your T-shirt. I HATE cut-away! For all stretchy items, I use a fusible no-show mesh. If the design is dense, as in your design, I will sometimes use two layers laid in opposite directions or float some tear-away beneath.