Braided
When first learning how to make a rag rug out of fabric, the easiest rug to make is a braided rag rug. For this rug, the only supplies you need are a needle and thread. Start by cutting your fabric into strips that are equal in width. Next, sew the strips together, and make them into three long strips. Braid the three strips together. Sew the braid together into a circle until it becomes as large as you would like.
Crochet
Making a crochet rag rug is very simple for someone who already knows how to crochet. Cut your fabric into equal width strips. Sew the strips together at the ends to make one very long strip. Rolling the strip into a large ball makes it easy to use. Then, using a single crochet stitch, crochet the fabric into the rug shape of your choice.
Latch Hook
Latch hooking is a very simple technique, which can be used to make a rag rug. You need a hook and a blank mesh canvas that has at least one-fourth inch openings. Cut your canvas into the size of the rug, and cut your fabric into strips that are a one-half inch wide and threed-fourths inches long. It is imperative that they are all the same length to avoid having to trim uneven ends later, which can be difficult and time consuming. Next, sketch the design you would like to do onto your canvas, and hook your rug using your rag strips.