Hand-knotting is an ancient art used to make rugs that are masterpieces of intricate designs. A hand-knotted rug is a one-of-a-kind rug that is woven completely by hand on a special loom. Popular types of hand-knotted rugs include Oriental and Persian rugs. These rugs are made from natural materials, such as wool, silk, and cotton. They have a flatter pile with less texture.