Light Gray Banner is a decorative block crafted from six light gray wool and one stick, laid out like a sign with the stick in the bottom-middle slot. The crafting grid returns exactly one banner, and the base color is fixed once crafted, so the pale gray tone cannot be redyed later. In the master bedroom of woodland mansions, a Light Gray Banner decorated with a White Flower Charge generates naturally, a placement introduced in Java Edition 1.11. Light Gray Banner breaks with any tool or a bare hand, with an axe working fastest, and drops as an item whenever the supporting block is moved, removed, or destroyed. Hardness 1 and blast resistance 1 keep Light Gray Banner fragile, while one inventory slot holds a stack of 16 banners.

Light Gray Banner accepts up to six pattern layers, each one applied in a loom with a dye, and the topmost layer washes off in a water-filled cauldron. An expert-level shepherd or cartographer villager sells one banner of any color, Light Gray Banner included, for three emeralds. Crafting Light Gray Banner together with a shield prints the design onto the shield and consumes the banner, and a patterned Light Gray Banner combined with a blank light gray banner produces two identical banners. In Java Edition, using a held map on a placed Light Gray Banner marks the banner position on the map. Light Gray Banner also serves as furnace fuel that smelts 1.5 items per banner, and the banner never burns, even when lava sets fire to the air beside the banner.