The present interchangeable purse and liner provides a single liner or insert which may be interchangeably installed in any of a series of compatible handbags or the like. A person using the present purse and liner system may place all of her normally carried personal articles (e.g., wallet, keys, cosmetics, notebook and pen, etc.) in the insert, and merely remove the insert from one purse and place it in another when changing purses from, e.g., an everyday purse to an evening bag. The purse includes an upper flap which folds over the upper edge of the liner, to provide a finished appearance for the assembly. Two fastener sets (e.g., magnetic snaps, mechanical snaps, Velcro®, buttons, etc.) are used, with one set securing the flap to the inner surface of the liner along its upper edge, and the other set fastening between the liner and the inner surface of the purse.