When dealing with a large hole in a rug, there are usually several options. We have discussed reweaving and patching here, but there is another way... in some cases, cutting a rug down makes the most sense, depending on the type of rug and the way the rug owner wants to use the rug in home.

This is a runner we have in here at the moment, with a gaping hole in the field. Patching would be problematic, in that we would need a fragment of a similar rug to pull a patch from... matching the color and texture of that background color would be next to impossible.
And restoring it would not be cost effective. The amount of money that would be needed to do a reweave could easily be spent on simply buying a new rug, since this rug is a contemporary piece. It is hand-woven, true, but it certainly isn't an investment piece. The value of this type of rug rests in its appearance more than anything - and right now, it has a large hole in it!
But it also has a repeating pattern, which makes it a perfect candidate for cutting down.

This idea is to remove a section and reattach it, matching the pattern as closely as possible, effectively making a shorter version of the same rug.

Here is a shot from the back, which gives an approximate idea of what the results will be. Instead of simply cutting it straight across and reattaching it, it helps visually to cut the borders in different places. This will help minimize drawing the eye to the place where the cut was made.

The center piece is removed, then cuts are plotted out in a staggered pattern for the borders.

Once the cuts are made, and the edges secured properly, the halves are reattached like a puzzle. Every attempt is made to match the design up perfectly; however, often small weaving quirks and variations prevent a perfect match. In this case, the two medallions were each slightly different widths.
The rug is secured, strong and ready for use. It is about 18 inches shorter, but the big, ragged hole is gone. If you know to look for it, the seam is visible (especially from the back), but people passing by will never know the rug used to be longer!
This strategy won't work in every case, but for some damaged rugs, it is definitely a viable option.