but indeed there is a snug slot for the stylus - as for the 360 cover, is very well made, in the sense that it is a perfect fit. I guess the problem is when you are taking notes, forget to put it back when goign to make tea, then you make a phone call, then you forget... at least this is for me, I "lost" the stylus many a times, but in the end it always shows up under some papers
Lucky so far, I guess!