DIY Faux Sheepskin from a Shag Rug: Part 1
We recently had one of those “wait, what?” moments: an Ikea rug we’d always assumed was faux actually listed its material as 100% sheepskin. That surprise led us to try a cruelty-free alternative—making convincing faux sheepskins from an inexpensive wooly shag rug. This post documents our first approach: how we turned a budget find into two cozy, tactile faux sheepskin rugs plus a bonus lumbar pillow.

Before you start, know that deciding between real and faux sheepskin is a personal choice. This is simply a practical, hands-on way to create a soft, wooly accent for your home without buying animal-derived products. We wanted to repurpose a large shag rug so the pieces wouldn’t go to waste and to give our relatives something they’d appreciate.
Step 1: Find the right rug. We scored a large, wooly shag rug at a discount store for $39. The rug was textured, thick, and had a woven fabric backing rather than sticky rubber, which made it perfect for cutting and shaping. The color—a warm eggshell—matched our plan and looked convincingly like a sheepskin.
Step 2: Create a template. We taped several sheets of paper together to form a life-size template, then sketched a sheepskin-shaped blob to use as a guide. Tip: fold the paper in half and cut the outline from the folded shape if you want a symmetrical result. We left ours a little asymmetrical since natural sheepskins aren’t perfectly even.
Step 3: Trace and cut. Place the template on the back of the rug and trace around it with a thin marker. We tested a small cut first to make sure the rug wouldn’t unravel. Fortunately, the rug’s construction held well—no tape or edge reinforcement was necessary. We traced and cut out two sheepskin shapes from the rug backing. Cuts were clean and the pile stayed intact.
Step 4: Refine the edges. After cutting, the pile around the perimeter can look unruly. We trimmed the edges with scissors to neaten the shape and create a polished silhouette. A few careful snips around the border clarified the outline and made the rugs look professionally finished.
What we ended up with were two dense, chunky faux sheepskins that work best as floor accents rather than drapey throws. They’re a bit structured—ideal for placing over an ottoman, layered on hardwood, or used as a small area rug. One of ours looks especially cozy on a square ottoman in the nursery, and the texture is so tactile that guests always reach down to touch it.
Bonus project: lumbar pillow. After cutting the two rugs, a long strip of leftover carpet remained. We trimmed it into a rectangle, folded it to create a loop of shag, and filled it with rug scraps. To hold the seam, we used safety pins tucked deep into the pile—completely hidden and secure. The dense shag conceals the pins so they’re neither visible nor uncomfortable. The pillow is practical and required no extra materials, making this project nearly zero-waste.
Performance and safety. We’ve used the pillow and rugs for weeks and haven’t felt any metal from the pins; they’re buried too deep to be noticed. If you prefer a permanent seam, you can stitch or adhesive-bond the edges instead. The method we used is reversible, which is handy if you want to rework the pillow later.
Final thoughts. This first version gives you a thick, durable faux sheepskin that’s perfect as a small area rug or ottoman topper. It’s an economical way to make two sheepskins and a decorative pillow from a single bargain rug—an efficient, sustainable approach to home accents. Later today we’ll share Part 2, where we make a softer, more drapey throw-like version using different materials and techniques. If you’ve upcycled rugs before—dyed, repainted, or reupholstered—tell us what worked for you. We love hearing creative reuse ideas.
Oh, and our dog Burger loves the new rug too. He naps there in the sun so often we’re convinced he approves of the no-animal-harmed approach.