A penny rug is a folk art style of decorative applique, traditionally made from felted wool. Pimitive shapes are sewn onto a wool background using a blanket stitch of contrasting colors. This decorative table covering is sometimes finished with a tongue shaped border. All of the Penny Rugs below are made with 100% quality felted wool with cotton fabric backings and were all hand stitched with primarily the blanket stitch and other addition embroidery stitches. Free shipping on orders over $250.