[TOMT] Cartoon about blue blanket w/ stars that gets repaired and refashioned and eventually winds up w/ mice

I remember a cartoon about a boy, his blue blanket with stars, and his grandpa. It was his favourite blanket and would get damaged and frayed over time and his grandpa would repair it and fashion it into smaller and smaller pieces over and over again (like into a vest I believe, and things like that). Eventually, the blanket became too small to do anything with and it fell through the cracks of the floor and came into ownership by these mice, who did the same thing the boy and his grandpa did. Anyone remember this or know what it's called?