Decide which colors you want in your rug. Purchase several yards of fabric. The size of the finished rug depends on how much fabric you buy. Buy three to four different prints or shades to make a pattern in your rug. Make sure to buy the same type of fabric for one rug. You can use lightweight cottons or heavier wool fabrics; just do not mix the fabrics in the same rug.
Cut all the fabric into 2-inch strips. Take three strips to start with. Cut off the ends of two of the strips to make three different lengths. This makes it easier to add more strips later.
Layer three pieces of the same fabric together with right sides facing up. Tie a knot in the end. You can use three different prints or colors of fabric if you want a multi-colored braided rug. Put a safety pin through the knot and into something to stabilize the rope as you braid it. The arm of the couch works well for this. Begin braiding.
Braid until you have quite a long rope. Start connecting the braid to form the rug. For an oval rug lay the braid on the floor. This will be the center of the rug. Curve around the braid to make two side-by-side strips. There will be excess braid on one end. Sew the braids together using clear nylon thread.
Add more fabric strips by making a 1-inch lengthwise cut in the end of the new strip and the old strip. Layer the ends together overlapping the slits. Pull the opposite end of the new strip up through the bottom of the hole to form a knot. Continue braiding.
Keep working the braid around the center strips to form an oval rug. If you run out of braid, simply add strips using the method in Step 2. Keep adding braid until your rug is the desired size.
To add a design into your rug, make the braid in smaller lengths. If you want two rounds of braid to be one color and the next three to be another, sew the two rounds together and cut off the excess fabric strips. Join the next color of fabric strips using the method in Step 2. Continue braiding and sewing the braids together until you have the desired look.