An improved pet bed for a pet such as a small dog or a cat includes a seat cushion for the pet to rest on, much like the owner's lap, and a connected back cushion much like the owner's torso. A pair of arm cushions extend from the back cushion, the arms moveable from a spread-apart open position, and a closed portion where the ends may be locked together. While in the open position the arms may receive a shirt of the pet owner, much like a mannequin. Then the arms may be moved to the closed position, and the small pet inside enjoys the feeling of being held by the pet bed and the scent of the owner's clothing. Advantageously, the shirt may be laundered, worn by the owner and replaced onto the pet bed.