She weaves a shroud for Laertes, Odysseus' father. The suitors don't know that she undoes by night what she did by day. Penelope would continue doing it if it wasn't for a servant girl who betrayed her by telling the truth to the suitors.
Penelope is wise, as she doesn't want to openly oppose the suitors, fearing the consequences. She is also loyal to her husband, and never loses hope that he would return. So, she is trying to both control the heady suitors and prolong the status quo until her husband's return.
