The World War II Reichskriegsflagge (Reich War Flag), also known as the battle flag, remains one of the most recognized and controversial symbols of that era.  Flown from buildings and ships alike, these flags were produced in a wide range of sizes, from enormous banners to much smaller examples.  Used extensively by both the Wehrmacht and the Kriegsmarine (German Navy), naval flags often bear a small stick-pin eagle and swastika stamp within the canvas hoist pocket.
This artifact, measuring just under 3 by 5 feet, likely represents a section cut from a larger Reichskriegsflagge.  Allied servicemen frequently collected such pieces as war trophies, often reducing their size for easier transport home. This particular example is likely one such souvenir.
Disclaimer: This flag is described for historical purposes only, and its description does not reflect any sympathy with the Nazi regime."