An improved method and apparatus for forming discrete sheets into an interleaved block of sheets suitable for use in a pop-up dispensing system. A preferred method comprises the steps of cutting a first web (200) into a plurality of first discrete sheet members (210), and cutting a second web (300) into a plurality of second discrete sheet members (310), the second discrete sheet members (310) preferably being mirror images of the first discrete sheet members (210). The first and second discrete sheet members (210, 310) are then associated in alternating relationship such that they form a substantially planar continuous shingled web (250). The shingled web (250) is then partially folded by urging the web (250) out of a substantially planar configuration into a plurality of continuously supported accordion-like folds. Finally, the partially folded web (250) is fully folded into an interleaved stack of discrete sheet members by collapsing the accordion-like folds. Also disclosed is an apparatus for forming a stack of interleaved, partially overlapping discrete sheets suitable for a pop-up dispenser.