Contemporary rugs are known for their simplicity and soothing patterns. Many years ago consumer taste changed from busy or dense traditional designs to more soothing colors and simpler patterns; as a result, during this time contemporary rug production increased significantly, offering a wide range of subtle colors and designs. After a while, however, the market for such contemporary rugs that lacked more complex color selections and patterns slowed; therefore, transitional rugs came into the picture. Transitional rugs are described as between traditional designs and contemporary: they often have less than ten colors and are less dense and busy than traditional rugs.

Some contemporary rugs are made of a combination of wool and synthetic fibers, while some are entirely made of synthetic fibers. Transitional rugs are made of wool and silk, all wool or a combination of wool and inlaid artificial silk. Persian Gabbeh are contemporary rugs with high quality wool and vegetable dye. India also produces some high quality, contemporary and transitional, vegetable dyed Gabbeh rug designs.
The major contemporary and transitional rug weaving regions are in India, Pakistan, Tibet, Nepal, Turkey and Iran. Most transitional rugs are made in Pakistan, India and Iran.
Beautiful Rugs has a selection of contemporary and transitional rugs available, and an example of a contemporary area rug (7303) has an allover diamond lattice network with five rows of two types of large stylized shah abbasi lotuses that are bright yellow and light brown on a medium brown field. The value range shift from yellow to brown is subtle, so the design on the rug remains blended into field. The traditional element in this rug (the design pattern) has been intentionally subdued in color intensity and contrast, as well complexity to convey a more relaxed impression.
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