A Canadian Towelette is when you dip your balls into a glass of beer (whether it is your own or someone else's largely depends on how drunk you are) and then gently lay them across someone's forehead. This is much easier to accomplish if they are passed out. The mixture of ball sweat and beer will slowly trickle down their face, much like a moist towelette.
"Damn, look at Lee's face! Why's it all wet like that?"

"Aw bro, he was being a dick and passed out so I took his beer, dipped my balls in it and gave him the ol' Canadian Towelette."

"Holy shit! Dude just woke up and took a swig! Haha, what a stupid chud!"
by Elindale January 6, 2010
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