EXHIBIT 21

        Wholly-owned subsidiaries of the Registrant are Shaw Financial Services,
Inc., a Georgia corporation;  Shaw Transport, Inc., a Georgia corporation;  Shaw
Industries  Australia,  Pty.,  Ltd.,  an Australian  corporation;  Shaw Contract
Flooring  Services,   Inc.,  a  Georgia  corporation;   Shaw  Contract  Flooring
Installation  Services,  Inc., a Georgia  corporation;  Shaw Retail  Properties,
Inc.,  a  Georgia  corporation;   Shaw  Contract  Properties,  Inc.,  a  Georgia
corporation; SHX Leasing, Inc. a Tennessee Corporation;  Shaw Funding Company, a
Delaware  corporation;  Rug Decor by Shaw  Corporation,  a Georgia  corporation;
Queen Carpet  Corporation,  a Delaware  corporation;  Pro Installations,  Inc. a
California  corporation;  SHX  Flooring,  Inc. a Delaware  corporation  and Shaw
Export,  Inc.  a  Barbados  corporation.  The  company  also  has  a  75%  owned
subsidiary,  Nylon Polymer  Company,  L.L.C., a Georgia  corporation,  and a 49%
owned subsidiary, Terza, S.A. de CV., a Mexican corporation.