Lace knitting is a style of knitting characterized by stable "holes" in the fabric arranged with consideration of aesthetic value. Lace is sometimes considered the pinnacle of knitting, because of its complexity and because woven fabrics cannot easily be made to have holes. Famous examples include the Orenburg shawl and the wedding ring shawl of Shetland knitting, a shawl so fine that it could be drawn through a wedding ring. Shetland knitted lace became extremely popular in Victorian England when Queen Victoria became a Shetland lace enthusiast. Her enthusiasm resulted i.a. in her choosing knitted lacework for presents; e.g. when in ca. 1897 the Queen gave a lace shawl as a present to American abolitionist Harriet Tubman. From there, knitting patterns for the shawls were printed in English women's magazines where they were copied in Iceland with single ply wool.

The Orenburg shawl is a Russian knitted lace textile using goat down and stands as one of the classic symbols of Russian handicraft, along with Tula samovars, the Matrioshka doll, Khokhloma painting, Gzhel ceramics, the Palekh miniature, Vologda lace, Dymkovo toys, Rostov finift (enamel), and Ural malachite.