Fold along the line where the backing material of the rug protrudes beyond the area of the rug, on one of the edges of the rug. Turn the fold to the wrong side of the rug.
Insert thread into the eye of the needle. Pull the thread through the eye of the sewing needle, until the two ends of the thread are aligned.
Work with the wrong side of the rug facing you. Insert the pointed end of the needle into the fabric backing of the rug and take a small stitch, about 1/8 inch long. Insert the needle into the rug and take another small stitch, being careful that your stitch is not visible from the right side of the rug.
Continue taking stitches until you reach the end of the edge. Take two or three stitches in the same spot to bind off the thread.
Repeat on the remaining three sides of the rug, or only on the opposite edge if the two short sides are fringed.