<SUBMISSION>
<ACCESSION-NUMBER>0001140361-11-043980
<TYPE>4
<PUBLIC-DOCUMENT-COUNT>2
<PERIOD>20110825
<FILING-DATE>20110829
<DATE-OF-FILING-DATE-CHANGE>20110829
<REPORTING-OWNER>
<OWNER-DATA>
<CONFORMED-NAME>Yogel Benjamin C.
<CIK>0001527442
</OWNER-DATA>
<FILING-VALUES>
<FORM-TYPE>4
<ACT>34
<FILE-NUMBER>000-20201
<FILM-NUMBER>111064133
</FILING-VALUES>
<MAIL-ADDRESS>
<STREET1>230 PARK AVENUE SOUTH
<STREET2>SUITE 1000
<CITY>NEW YORK
<STATE>NY
<ZIP>10169
</MAIL-ADDRESS>
</REPORTING-OWNER>
<ISSUER>
<COMPANY-DATA>
<CONFORMED-NAME>HAMPSHIRE GROUP LTD
<CIK>0000887150
<ASSIGNED-SIC>2253
<IRS-NUMBER>060967107
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<BUSINESS-ADDRESS>
<STREET1>1924 PEARMAN DAIRY ROAD
<STREET2>PO BOX 2667
<CITY>ANDERSON
<STATE>SC
<ZIP>29625
<PHONE>8642311200
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>1924 PEARMAN DAIRY ROAD
<STREET2>PO BOX 2667
<CITY>ANDERSON
<STATE>SC
<ZIP>29625
</MAIL-ADDRESS>
</ISSUER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>doc1.xml
<DESCRIPTION>FORM 4
<TEXT>
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<ownershipDocument>

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    <documentType>4</documentType>

    <periodOfReport>2011-08-25</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0000887150</issuerCik>
        <issuerName>HAMPSHIRE GROUP LTD</issuerName>
        <issuerTradingSymbol>HAMP</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001527442</rptOwnerCik>
            <rptOwnerName>Yogel Benjamin C.</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>C/O HAMPSHIRE GROUP, LTD</rptOwnerStreet1>
            <rptOwnerStreet2>114 W.41ST STREET</rptOwnerStreet2>
            <rptOwnerCity>NEW YORK</rptOwnerCity>
            <rptOwnerState>NY</rptOwnerState>
            <rptOwnerZipCode>10036</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle></officerTitle>
            <otherText></otherText>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <transactionDate>
                <value>2011-08-25</value>
            </transactionDate>
            <deemedExecutionDate></deemedExecutionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>J</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>967009</value>
                    <footnoteId id="F1"/>
                </transactionShares>
                <transactionPricePerShare>
                    <footnoteId id="F1"/>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>967009</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>By BGY II, LLC</value>
                    <footnoteId id="F1"/>
                </natureOfOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <derivativeTable></derivativeTable>

    <footnotes>
        <footnote id="F1">See Exhibit 99.1</footnote>
    </footnotes>

    <remarks></remarks>

    <ownerSignature>
        <signatureName>/s/ Maura M. Langley, Attorney-in-Fact for Benjamin Yogel</signatureName>
        <signatureDate>2011-08-29</signatureDate>
    </ownerSignature>
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</TEXT>
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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>misc1.htm
<DESCRIPTION>MISCELLANEOUS EXHIBITS
<TEXT>
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    <title>Unassociated Document</title>
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<div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 12pt">1)&#160;&#160;</font></div>
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<div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 12pt">Received in exchange for Mr. Yogel&#8217;s interest in Rio Garment S. de R.L., a limited liability company organized under the laws of Honduras (&#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Rio</font>&#8221;), under the terms of the Agreement and Plan of Merger, dated as of June 13, 2011, among the Issuer, RG Merger Sub, S.A., a Honduran <font style="FONT-STYLE: italic; DISPLAY: inline">sociedad anonima</font> and a wholly owned subsidiary of the Issuer, Rio, the equityholders of the Rio (the &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Equityholders</font>&#8221;) and BGY II, LLC, a Delaware limited liability company (&#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">BGY II</font>&#8221;) as equityholders&#8217; representative (as amended, the &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Merger Agreement</font>&#8221;).&#160;&#160;Pursuant to the Merger Agreement, at the closing of the transaction, the Issuer issued an aggregate of 967,009 shares of common stock to BGY II (valued at a 90-day volume-weighted average price per share of $3.6480).&#160;&#160;In addition, pursuant to the Merger Agreement, an additional 1,781,798 shares of common stock have been held back by the Issuer: (x) 753,838 of which would be issued to BGY II, on behalf of the Equityholders, if Rio&#8217;s 2011 adjusted EBITDA for the year ending December 31, 2011 multiplied by three (3) equals or exceeds $23,000,000 and (y) 1,027,691 of which may be used to satisfy claims arising as a result of the Equityholders&#8217; breach of their representations and warranties or covenants in the Merger Agreement.&#160;&#160;Mr. Yogel owns an interest in BGY II through YIH III, LLC.&#160;&#160;The Equityholders have executed an Equityholders&#8217; Representative and Distribution of Proceeds Agreement (the &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Distribution of Proceeds Agreement</font>&#8221;), pursuant to which the cash paid, and the common stock issued to, BGY II by the Issuer pursuant to the Merger Agreement is distributed among the Equityholders pursuant to the terms of such Distribution of Proceeds Agreement.</font></div>
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