I am often asked how I sew French Seams so tiny they fit in the groove of a smocking pleater. I have the seam down to 1/8". Here are the instructions, step by step.
Not all French Seams need to be so fine. As a matter of fact, there are times when a 1/4" FS is better for comfort or function. THIS technique has been developed for use with a smocking pleater.
Step 1. Pin fabrics wrong side to wrong side.
Pin perpendicular to the edge for easy removal as you sew toward each pin.

Step 2. Sew the first pass using a shortened straight stitch, L1.0-1.5.
For fabrics that tend to fray or stretch use the Lightening Stitch, again, very short length, L1.5-2.0.
The 'Lightening Stitch' is actually a stretch stich. It has a zig followed by a straight stitch.

Sew this first pass 1/8" away from the final seam placement toward the raw edge.
HINT: It may be helpful to mark your final seam with a washable marker.

Step 3. Press the seam flat to set the stitches into the fabric. Steam if your fabric can take it.
Step 4. Trim the seam.
Trim away everything up to 3-4 threads of the fabric next to the seam. My sample has a 1/4" seam allowance. I sewed the first pass on the 1/8" mark. I am trimming away about 1/16".
HINT: I ~ADORE~ these Gingher G-5 trimmers for this step!

Step 5. Press the remaining seam allowance UP.
Pressing from one side, gently pulling the fabric away from the iron, butting the edge of the iron up to the seamline, press.
Repeat on the other side of the seamline so the seam allowance is actually sticking up in the air.

Step 6. Fold over the fabric right side to right side.
HERE IS THE TRICKY PART (Thinking THE BIG FIG NEWTON ;) )!
Stick an extra long glass head pin into the inside edge of the seam, running the pin's edge GENTLY along the seamline pushing it outward. Pop the pin into the very end of the seam.
Place another glasshead pin a few inches down the seam to hold this pin-pressed seam in place.
Press, steaming if you can, this section of the French Seam.
Leave the last pin in place, repeat the pin pressing/pop at the other end.
Press. This gives an extremely tight seam edge.
I'm sorry you just steamed your fingers, but your seam looks lovely already!

Pin this section before sewing.
Step. 7. Sew the final seam.
Sew the final pass with a straight stitch, shorter than a normal stitch but not as short as the first pass. L1.5-2.0
Place this final pass on the original seamline.
HINT: take advantage of the feet in your tool box! Some like to use an edge or zipper foot to get up close. Others like to use a pintuck foot letting the seam ridge ride in a groove. Honestly, there is not one right answer. Try different feet! What works on one fabric might not work on another fabric.

Step 8. The final seam!
Measures 1/8"! One last pressing and it is ready to pleat!

As with all heirloom techniques, make a sample and practice. Soon your Finest French Seams will be the envy of your sewing group.