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.