I make bags of various sizes from them. Use them to hold my flint and steel stuff, my general supplies in my hunting/fishing pack, ball bags in my shooting bag, etc.
Also my cats love them as toys to tear around the house with. They will stalk them and pounce on them. You will usually find a couple laying on the floor around the house that they're using for toys. They occasionally cause some odd looks from people like carpet cleaners. :grin:
As maybe you could guess from my name, I use squirrel tails as decoration on outdoor stuff, backpacks, fishing bags, hunting bags, and so forth. Not much of my outdoor gear doesn't have at least one squirrel tail attached (usually a lot more) and maybe a fox tail attached too.