このハンカチは紙でできている。

this (something or someone close to the speaker (including the speaker), or ideas expressed by the speaker)

handkerchief

topic marker particle; indicates contrast with another option (stated or unstated); adds emphasis

paper

indicates location of action; at; in; indicates time of action; indicates means of action; cause of effect; by; and then; so; indicates continuing action; indicates certainty, emphasis, etc.

to be able (in a position) to do; to be up to the task; to be ready; to be completed; to be made; to be built; to be good at; to be permitted (to do); to become intimate; to take up (with somebody); to grow; to be raised; to become pregnant