Peshawar is the capital city of the North-West Frontier Province, in Pakistan. The city situated on the Afghanistan-Pakistan border has been an important center for trade and commerce in the region. Located on the edge of the Khyber Pass, the city is a cultural blend of Pakhtuns, Pashtuns, Turks, Uzbeks, Afghans and numerous other tribes that dominate the region. The city though is more famous for its traditional carpets or as more commonly known as Peshawar rugs.

Peshawar rugs do not mean that they come from Peshawar or are sold in Peshawar. Peshawar rugs are peculiar carpets that are characterized by artistic designs and subtle shifts in their color. Peshawar rugs are made either of wool or cotton. They may be vegetable dyed. Not so surprisingly the hand-woven variety 'Chobi' is more famous. Chobi is the name of a carpet traditionally made from handspun wool and natural colors extracted from plants and vegetables. A combination of high quality weaving techniques and innovative use of traditional Persian designs makes the Chobi rug one of the most desirable rug types in the market today.

They are greatly inspired by the ancient Persian designs and make use of exquisite and delicate designs to create highly complex patterns. These rugs look a lot like antique Persian rugs. Though traditionally of rectangular shape, a few specimens of round shape are also found. Symmetric designs are widely used. In order to provide a more smooth finish, the rugs are made using special Ghazni wool. The dyes used may be chemical but it is the vegetable dyed rugs, which are more costly. The Peshawar rugs possess a very peculiar feel and add to that 'antique' look.