Store marshmallows in a tightly sealed plastic bag in the freezer and they won't dry out. They are easier to cut when frozen also!
Source: My Mom
By JodiT from Aurora, CO
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To keep marshmallows soft after you have opened the bag if you do not use them all, sprinkle a little powdered sugar on them and shake them up. Close the bag and they will keep like fresh for a long time.
By Rose from Bloomer,WI
Great idea. Mine always become stuck together in one huge clot. This tip should help in the future. (08/31/2006)