The aim of this final project was to design a set of felted rugs and to develop a production method for felted, bottom cloth suitable for the cutting of these rugs. The background of the project was a felted set of textiles produced by the designer. According to the feedback of sellers and customers this set is associated as a story product, which has the powerful impact of winter nature theme. According to the feedback the set required another set of textiles in the same spirit. Interior design trends and other current phenomena, as well as the designers own experiences and memories of winter formed the background for designing the new set. A production method for a felted rug appropriate to the aesthetic result was acheived during the product development process. The shapes, sizes and fixing methods were designed after finding an appropriate production method and suitable materials. All these were tested using prototypes. The product development process progressed through experiment, analysis and sketching towards a design of a set of rugs. The prototypes of the different parts of the set were eventually realised. A system analysis approach was used as a research method while the product development process followed Anttila´s theoretical model for designing and producing craft products. The rug set was analysed using the function analysis method.