"Persian Rug" is a handmade rug. "Persian Design Rug" can be either a rug hand-woven in a Persian-style design, but woven in a country other than Iran (Persia), such as India, Pakistan, or Romania, or a rug that is machine made.

The design of a rug is usually identified by the name of the city, region, village or tribe of origin. Sometimes it is identified by the technique of weaving used. This can be confusing. For example, Persian Tabriz design rugs are all woven in the city of Tabriz in Iran, but can come in many different "sub-designs" referred to by the names Tabriz Fish, Tabriz Taba, and Tabriz Heriz, to name a few.

However, in today's oriental rug market, regional distinctions of rugs have become unclear, and therefore confusing for first-time buyers. This is because the original designs of a specific region are being copied and woven in other parts of the world. For instance, Persian designs are now woven also in China, India, Romania, and Pakistan, and Turkoman designs are being woven in Pakistan.

A buyer cannot assume that the name alone is a reliable indicator of the country of origin.