Esfahan is located in western central Iran. Esfahan rugs have been and still remain very famous worldwide. Since Esfahan has been a capital city of many rulers including Shah Abbas of Safavid Dynasty, many mosques, palaces and other great monuments have been built in Esfahan, especially during the reign of Shah Abbas in the 16th and 17th centuries when Esfahan was a great center of art. These buildings have greatly influenced the rug designs of Esfahan. Some typical designs used in Esfahan rugs are geometric medallions, trees with animals, or pictorials of people and nature, sometimes based on Safavid miniatures.

Many colors are used in Esfahan rugs, seldom less than 15 in one rug. Most commonly colors, such as turquoise, navy, red, beige, and pale mushroom. Another characteristic of Esfahan rugs is the very specific terra cotta red color, that is frequently used either in the field, border or accents of the carpet. This unique crimson-colored dye is derived from a small scale insect, called Cochineal.

(Other spelling: Isfahan)