A pillowcase alone and in combination with a unique pillow design which provides an interior pocket open at an outer margin thereof for receiving and protectively storing small articles or objects such as a watch, jewelry, small personal mementos, notes and cards, photos, soft sculptures and the like. In the preferred embodiment, the pillowcase has a generally rectangular shape adapted to receive and cover two thin pillows together, or alternately, a conventional pillow. A pocket, smaller than the main portion of the pillowcase, formed continuously with, or as an extension of, each side panel of the pillowcase, is sewn together around exposed outer margins thereof. When folded inwardly, the pocket is positioned or tucked within the interior of the pillowcase against a conventional pillow, between or against two thin pillows, or within or against a pillow with a pocket-receiving cavity. The pocket is then open to receive the articles.