The art of hooking wool rugs is centuries old, although the exact date cannot be traced. A lot of ambiguity still exists regarding when and where the craft actually started. Certain wool rug hooking history records claim that descendants of the ancient Egyptians made the first hand-hooked rugs between the third and seventh centuries. Other history records state that rug hooking originated in China or Europe. However, few authorities now believe that rug hooking is America's original folk art, with the first hooked rugs appearing in Atlantic Canada and New England.

It is known for certain, however, that wool rug hooking experienced a sudden rise in the mid-nineteenth century in the New England states and the Maritime Provinces of Canada. Born primarily out of necessity, hand-hooked wool rugs were created by rural women to cover the bare floors of their homes. Later, people began selling and trading hooked wool rugs, and in due course cottage industries making these unique items sprang up across the continent.

By the mid 90s wool rug hooking had become a well-established pastime in the United States and Canada. Today, it has evolved into a popular means of individual expression as well as a pragmatic pastime. Rug hooking makes use of a hand held hook, which looks similar to a crochet hook to form a looped pile from textile strips or wool on an even-weave base fabric. However, rug hooking should not be mistaken for latch hooking, which uses a hinged hook to form a knotted pile from short pieces of wool.

Over the years, many people have followed hooking wool rugs as a trade as well as a hobby. Original hooked woolen rugs can be obtained through professional dealers or private collectors. Apart from this, many Internet websites also do provide a great deal of information on the same. Woolen rugs are generally preferred as they are resistant to dirt and do not absorb soil. However, on purchasing a wool hooked rug, people should take adequate care to maintain the same.