A piece of clothing or material ie. sock, towel that is used to ejaculate into.
All the guys stole renee's school shirt and used it as a happy rag.
by Matt[O] July 03, 2005
1 more definition
piece of cloth or a rag used to wipe off cum off peanis
i over drenched my happy rag
by spying cow August 29, 2006