A pill packaging machine and a method of packaging pills. The method includes supplying first and second sheets of flaccid packaging material, rolling the first and second sheets into spaced apart opposed relation and into contact with one another, guiding pills along a guide path toward an ejection path having an ejection outlet that is spaced apart from a line of contact between the first and second sheets, spinning a resiliently deformable ejection roller into frictional contact with the pills to eject the pills through the ejection path out of the ejection outlet to a location between the first and second sheets, and further rolling the first and second sheets to enclose the pills therebetween.