THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
                         c/o Prudential Capital Group
                              Four Gateway Center
                              100 Mulberry Street
                           Newark, New Jersey 07102

                                 July 14, 1994


CROWN CRAFTS, INC.
1600 Riveredge Parkway
Suite 200
Atlanta, Georgia 30328

         Attention:  Mr. Robert E. Schnelle
                     Treasurer

Ladies and Gentlemen:

         This letter is to amend the Note Agreement between Crown Crafts, Inc.
(the "Company") and The Prudential Insurance Company of America ("Prudential"),
dated December 18, 1990, as previously amended, under which Prudential
purchased the Company's 9.22% promissory note due November 15, 1996, in the
original principal amount of $15,000,000 (the "Note Agreement").

         Pursuant to paragraph 11C of the Note Agreement, Prudential and the
Company hereby agree that: (i) paragraph 6C(2) of the Note Agreement is amended
by increasing the dollar amount in clause (iv) thereof to "$25,000,000"; (ii)
paragraph 6A(ii)(b) is hereby amended by reducing the requirement therein to
150%; and (iii) paragraph 6C(3)(ix) is hereby amended by increasing the letter
of credit amount to $5,000,000.

         The terms and conditions of the Note Agreement as amended hereby are
and shall remain in full force and effect.
CROWN CRAFTS, INC.
July 14, 1994
Page 2


         If you agree with the foregoing, please sign the enclosed counterparts
of this letter and return them to us, at which time this letter shall become a
binding agreement between the Company and Prudential.


                                                   Very truly yours,
                                                   
                                                   THE PRUDENTIAL INSURANCE
                                                   COMPANY OF AMERICA
                                                   By: /s/ Jack Curb
                                                       ------------------------
                                                       Vice President


The foregoing is agreed to and
accepted as the date first above
written.

CROWN CRAFTS, INC.


By:  /s/ Robert E. Schnelle
     ----------------------
     Robert E. Schnelle
     Treasurer