Choose two pallets that are clean and not damaged. Pallets from foreign shipments tend to be of high quality.
Use a hammer to pound in or remove loose nails. Smooth any rough spots that could cause splinters or catch on clothes with a medium-grade sandpaper.
Apply a coat of wood stain to both pallets with a paintbrush. The stain will make the pallets look better and help protect them from the elements. Allow the stain to dry completely.
Select a level spot to install the lounge. Place the two pallets on the spot right next to each other, with no gap between them.
Measure the length and width of the two pallets together. Cut a piece of foam 3/4 inch smaller than the pallet measurement. This foam will be the cushion for the lounge.
Cut a piece of outdoor fabric to measure 8 inches larger than the foam on all sides. Stretch out the fabric facedown.
Place the foam cushion on top and in the center of the fabric. Fold over the ends of the fabric. Cut two pieces of fusible web to fit across the width of the foam. Place the pieces of web under the fabric folded over on the ends. Use an iron to fuse the fabric to the foam. Tightly fold over the sides of the fabric, and fuse them to the foam.
Place the foam cushion on top of the pallets with the seam side down. Arrange several outdoor pillows on the lounge for comfort.