Abstract: An apparatus (10) is provided for tufting an embroidered rug using an automated tufting machine and an X-Y gantry, wherein the tufting needle to rotate without creating adverse affects in the tufted pattern. A tufting head (42) is carried by an upper gantry (12) and is moveable along the length thereof in the Y-direction via a tufting head motor (66). The upper gantry (12) and a lower gantry (30) are moveable in the X-direction via two upper gantry motors (20). The tufting head (42) includes a cylinder (46), a piston (50), a needle (52), and a blade (54). The cylinder (46) is secured to a frame (44) via at least one pillow block (58) defining a cylindrical opening (60) dimensioned to slidably receive the cylinder (46). The piston (50) carries the blade (54) and is configured to reciprocate within the cylinder (46). The needle (52) is secured to the distal end of the cylinder (46) and defines a centrally disposed through opening (53). The blade (54) is coaxial with the longitudinal axis of the cylinder (46).