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Tibetan rug making is an ancient, traditional craft. Tibetan rugs are traditionally made from Tibetan highland sheep's wool, called changpel. Tibetans use rugs for many purposes ranging from flooring to wall hanging to horse saddles, though the most common use is as a seating carpet. A typical sleeping carpet measuring around 3 ft × 5 ft (0.91 m × 1.52 m) is called a khaden.
The knotting method used in Tibetan rug making is different from that used in other rug making traditions worldwide. Some aspects of the rug making have been supplanted by cheaper machines in recent times, especially yarn spinning and trimming of the pile after weaving. However, some carpets are still made by hand. The Tibetan diaspora in India and Nepal have established a thriving business in rug making. In Nepal the rug business is one of the largest industries in the country and there are many rug exporters. Tibet also has weaving workshops, but the export side of the industry is relatively undeveloped compared with Nepal and India.