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;   Carpets
International,  PLC.,  a United  Kingdom  corporation;  Shaw  Contract  Flooring
Services,  Inc., a Georgia corporation;  Shaw Carpet Showplace,  Inc., a Georgia
corporation;  Shaw Retail Properties, Inc., a Georgia corporation; Shaw Contract
Properties, Inc., a Georgia corporation; New York Carpet World, Inc., a Michigan
corporation;  Carpetland USA, Inc., an Indiana  corporation;  G & S Investments,
Inc., a  Washington  corporation.  The Company also has a 49% owned  subsidiary,
Terza, S.A. de CV., a Mexican corporation.