Hamadan is the capital city of the northwestern province of Hamadan in Iran. This city is more of a marketplace for rugs made in villages and towns in the vicinity than a rug production center. Sometimes the rugs are marketed under their village name, but often they are sold as Hamadans.

The majority of Hamadan rugs have a geometric pattern. The most common designs consist of medallion-and-corner, and all-over boteh or herati. Diamond and hexagon medallions are common. Often the all-over herati designs have a narrow field in the shape of a large octagon creating corners.