The exhibition, which opened on Saturday, is being in an area of 45,000 square meters at Tehran's International Fairgrounds, Press TV wrote.
Hundreds of Iranian carpet weaving units are taking part in the event putting their latest products on display.
According to official figures, carpet industry in Iran has a significant share in the country's non-oil exports. Iranian handmade carpets are well-known worldwide for their delicate designs and good quality.
The event, according to the organizers, is aimed at promoting Iranian handmade carpets in the world and paving the way for further exports of the carpets in the global markets.
The annual event usually attracts about 40,000 visitors including traders and researchers from Iran and the world.
The exhibition will remain open until September 1.
Iran's carpet weaving industry received a heavy blow after the Office of Foreign Assets Control (OFAC) of the US Treasury Department revoked the license for the imports of Iranian-origin carpets.
The move was in line with US President Donald Trump's increasingly hostile approach toward Iran a few months after he withdrew Washington from the 2015 multilateral nuclear deal, officially known as the Joint Comprehensive Plan of Action (JCPOA).
In reaction, the Head of Iran National Carpet Center (INCC) Fereshteh Dastpak said Iran would file a lawsuit with international tribunals against fresh sanctions imposed by the US on the imports of handwoven Iranian rugs into the country.
The US was the biggest buyer of Iranian carpets and imported handwoven rugs worth $80 million annually prior to the imposition of sanctions.
Latest statistics released by the Islamic Republic of Iran Customs Administration show that some 5,400 tons of handwoven carpets worth $424 million were exported in the last fiscal year, which ended on March 20, 2018, registering an increase of over 18 percent in value compared to the figure for the previous year.