Free cut edges on undergarments help to minimize the appearance of visible panty lines. However, typical free cut undergarments are flat and do not conform to the shape of the body. The undergarment disclosed herein has free cut edges and a gusset panel that addresses the limitations of existing free cut undergarments. The gusset panel is gathered along its left and right edges using elastic thread or elastic bands. The gathering provides elasticity and shape to the gusset panel, and limits the extent to which the gusset panel slides and becomes displaced on the wearer.
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