Despite the fact that it seems like a huge project, making a rug on a peg loom is rather easy. It doesn't take long to make a rug on a long loom; you just need to know a few basic stitches and how to join panels together. It is best to start with a versatile loom rug pattern that you can adjust to preference.
Knit panels using the zigzag/figure-eight stitch. Start by anchoring your working yarn to the anchor peg of the loom with a slipknot. Use two strands of yarn held together so your rug is thick and durable.
Place your working yarn between the first two pegs on the right side of your long loom. The yarn will go from the inside of the loom to the outside. Wrap the working yarn around peg one from the outside back toward the inside of the loom.
Guide your working yarn across the loom so it is between pegs two and four on the left side of the loom. Wrap your working yarn around peg two from the back toward the inside and back across between pegs three and five. Keep going back and forth like this until you get to the other side of the loom.
Reverse direction when you get to the other side of the loom so you can knit back to the beginning of the loom. When you are back at peg one, anchor your working yarn on the anchor peg.
Life the bottom loop over the top loop on each peg of the right side using the pick tool. Do the same thing on the left side of the loom. Make sure each peg has been knit off and has just one loop.
Start knitting again using the zigzag stitch. When you get to the other side, knit off again.
Keep going back and fourth doing the zigzag stitch and knitting off until you have a panel that is about 8 inches by 8 inches.
Cut your working yarn, leaving a 6-inch tail. Take a croquet hook and lift the loop on peg two and move it over to peg one. Using your pick tool, knit off peg one. Move that loop from peg one to peg two and peg three to peg two. Knit off peg two. Repeat these steps until you only have one loop at the end of your loom.
Pull the tail through the last loop to create a knot. Weave the tail into the panel with a plastic needle.
Make 16 panels that are 8 by 8 inches each. Sew the panels together with a strand of yarn and a plastic needle. The rows will be four squares across and four squares down.
Use puffy paint to make your rug non-slip. Put dime-sized blobs of puffy paint on the back of your rug in the corners and middle section. Wait until the puffy paint dries before turning the rug over.