Mountain Rug Mills was started by John Boss, who manufactured braided rugs in Amboy, Illinois. The name of his company was Midwest Rug Mills. He moved part of his equipment down to Fletcher, North Carolina in the late 1940's and named the company Mountain Rug Mills. At that time, he retained Joseph, (Joe) and Doris Miller, pioneers in the art and detail of making Hand Hooked rugs as an enterprise.

Gill Morgan joined Mountain Rug Mills in 1973. He attributes his knowledge of making rugs, primarily to Joe Miller. GIll and his wife, Judy, purchased Mountain Rug Mills in 1994. Their son, Anton, also joined the company as Plant Manager in 1994. Due to the widening of Highway 25, next to the building, the operation was moved to Hendersonville, North Carolina in 1999.

Completed making two rugs for the White House in 2008 and early 2009 for the Diplomatic Reception Room and the Old Family Dining Room.