The materials used in hand made carpets are chiefly wool or silk. The foundation that the knots are tied on can be wool, cotton, silk or even goat hair. Cotton is used extensively as the preferred foundation due to it sturdy properties - it does not shrink in different weather conditions, it maintains the shape of the carpet and lies flat, it is finer and more compact than wool. Wool and silk are most often used for the knotting of the pile, but they are sometimes used for the warp and the weft.

The breed and age of the sheep, the season when sheared, the climate and surrounding environment are all factors that determine the quality of wool defined by its thickness, texture and color. Sheep from mountain regions have a longer fleece, Winter fleece produces thicker and heavier wool, while spring fleece is softer and finer. Lambs aged 8 to 14 months produce some of the finest wool, called kork. This kind of wool, very thin and silky, was used in Manchester, England and eventually found its way to Persia.

The Persian lamb, such as Kurdish and Beluchi, is known for its superb wool.

Live wool is wool sheared from living sheep. Good live wool is durable and soft, it retains its lanolin and essential oils giving the rug resilience. Good wool captures the light and diffuses it amongst its fibers. If good wool is used, over the course of time, the natural oils come to the surface producing a wonderful sheen. In fact, an older rug sometimes looks as though it is made of silk instead of wool. Rugs of wool are more durable and are easier to maintain. Wool is more resilient, cleans better and stays clean longer. The preparation of the wool has much to do with the appearance of the final product. Proper shearing guarantees the length of the fibers. Then the fibers are washed, sorted, teased, fluffed and combed to be ready to be spun on a spindle or spinning wheel. After the spinning process the yarn can be dyed.