Eluru is famous for its hand-knotted carpets, also known as Deccan rugs, which are made using a mix of Persian-inspired designs and local craftsmanship. The craft flourished due to the availability of a local shrub used for yellow dye and is now concentrated in Eluru and the nearby area of Thangellamudi.

• History: The art of carpet weaving was introduced by artisans from Iran and Arab countries and was adopted by local workers in Eluru. It is believed to have been established during the Mughal era.
• Designs: The carpets are known for their intricate Indo-Persian designs, including floral and geometric patterns. Designs are often named after the makers (e.g., HussainKhani, Amarkhani) or feature motifs like boats and flowers.
• Materials: Artisans use cotton yarn, locally sourced wool, and premium wool from regions like Bikaner and Bhadohi. A local shrub called Tangellamudi was historically important as a source of natural yellow dye.
• Weaving technique: The carpets are traditionally woven using a technique called talim on vertical looms, primarily by the Muslim community.
• Colors and patterns: They are known for vibrant geometric and floral patterns, often featuring a mix of blue, green, soft yellow, and pastel shades.
• Significance: Eluru carpets have also been referred to as Deccan rugs, a reflection of their royal patronage. Despite their rich heritage, the craft is now primarily confined to Eluru and Thangellamudi.