A hand-knotted rug is a one-of-a-kind rug that is woven completely by hand on a special loom. ... These rugs are made from natural materials, such as wool, silk, and cotton. They have a flatter pile with less texture. Weaving a hand-knotted rug requires a great deal of skill and often a lot of time to produce. hand-knotted rugs are made with wool and silk, they are very durable, soft, and stain resistant. Not every hand-knotted rug is traditional. Many contemporary styles like shag rugs are hand-knotted to help keep the threads together. Even modern designs can become family heirlooms when hand-knotted.