<SUBMISSION>
<ACCESSION-NUMBER>0001140361-11-044571
<TYPE>4
<PUBLIC-DOCUMENT-COUNT>2
<PERIOD>20110825
<FILING-DATE>20110902
<DATE-OF-FILING-DATE-CHANGE>20110902
<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>
<REPORTING-OWNER>
<OWNER-DATA>
<CONFORMED-NAME>BGY II, LLC
<CIK>0001529039
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</OWNER-DATA>
<FILING-VALUES>
<FORM-TYPE>4
<ACT>34
<FILE-NUMBER>000-20201
<FILM-NUMBER>111073423
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>28632 ROADSIDE DRIVE
<STREET2>SUITE 200
<CITY>AGOURA HILLS
<STATE>CA
<ZIP>91301
<PHONE>818-878-3900
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>28632 ROADSIDE DRIVE
<STREET2>SUITE 200
<CITY>AGOURA HILLS
<STATE>CA
<ZIP>91301
</MAIL-ADDRESS>
</REPORTING-OWNER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>doc1.xml
<DESCRIPTION>FORM 4
<TEXT>
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    <schemaVersion>X0304</schemaVersion>

    <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>0001529039</rptOwnerCik>
            <rptOwnerName>BGY II, LLC</rptOwnerName>
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        <reportingOwnerAddress>
            <rptOwnerStreet1>28632 ROADSIDE DRIVE</rptOwnerStreet1>
            <rptOwnerStreet2>SUITE 200</rptOwnerStreet2>
            <rptOwnerCity>AGOURA HILLS</rptOwnerCity>
            <rptOwnerState>CA</rptOwnerState>
            <rptOwnerZipCode>91301</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
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        <reportingOwnerRelationship>
            <isDirector>0</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>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <derivativeTable></derivativeTable>

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

    <remarks></remarks>

    <ownerSignature>
        <signatureName>/s/ Scott Rusczyk, Vice President</signatureName>
        <signatureDate>2011-09-01</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>misc1.htm
<DESCRIPTION>MISCELLANEOUS EXHIBITS
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    <title>Unassociated Document</title>
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<div align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Received pursuant to 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 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;), the equityholders of 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;). 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). 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. All cash paid, and the common stock issued to, BGY II by the Issuer pursuant to the Merger Agreement shall be distributed by BGY II among the Equityholders pursuant to the terms of an Equityholders&#8217; Representative and Distribution of Proceeds Agreement.</font></div>
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