I think it would be cool if we could equip our pets with actual gear, like if we put a helmet on our pet it will get +20 health or +3 resist or something. Not only would this be cool to make your pet look snazzy, but it would also be useful in combat. Here is a couple gear examples

Helmet
+15 max health
+2 base armor
-3 accuracy

Goggles
+2 accuracy
+3 dodge
-10 max health

stuff like that, note that gear is not always a straight upgrade since it would also give a downside. Maybe you could also stitch pet gear like normal gear.

Any suggestions? feedback? criticism? Feel free to ask.