Ownership Submission
FORM 4
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
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(Print or Type Responses)
1. Name and Address of Reporting Person *
FRIERSON DANIEL K
  2. Issuer Name and Ticker or Trading Symbol
DIXIE GROUP INC [DXYN]
5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
__X__ Director __X__ 10% Owner
__X__ Officer (give title below) _____ Other (specify below)
Chairman of the Board and CEO
(Last)
(First)
(Middle)
THE DIXIE GROUP, 345-B NOWLIN LANE
3. Date of Earliest Transaction (Month/Day/Year)
08/12/2005
(Street)

CHATTANOOGA, TN 37421
4. If Amendment, Date Original Filed(Month/Day/Year)
6. Individual or Joint/Group Filing(Check Applicable Line)
_X_ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3)
2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code
(Instr. 8)
4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)
5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4)
6. Ownership Form: Direct (D) or Indirect (I)
(Instr. 4)
7. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V Amount (A) or (D) Price
Common Stock, $3 par value 08/12/2005   M   80,000 A $ 6.96 118,678 (1) D  
Common Stock, $3 par value 08/12/2005   S   1,500 D $ 16.8 117,178 (1) D  
Common Stock, $3 par value 08/12/2005   S   10,000 D $ 16.905 107,178 (1) D  
Common Stock, $3 par value 08/12/2005   S   6,500 D $ 16.9 100,678 (1) D  
Common Stock, $3 par value 08/12/2005   S   5,000 D $ 16.7624 95,678 (1) D  
Common Stock, $3 par value 08/12/2005   S   8,500 D $ 16.9374 87,178 (1) D  
Common Stock, $3 par value 08/12/2005   S   3,500 D $ 16.8985 83,678 (1) D  
Common Stock, $3 par value 08/15/2005   S   5,500 D $ 16.7303 78,178 (1) D  
Common Stock, $3 par value 08/15/2005   S   13,500 D $ 16.75 64,678 (1) D  
Common Stock, $3 par value 08/12/2005   F   9,449 D $ 17.01 55,229 (1) D  
Common Stock, $3 par value 08/12/2005   M   3,037 A $ 7.66 58,266 (1) D  
Common Stock, $3 par value 08/12/2005   M   699 A $ 4.78 58,965 (1) D  
Common Stock, $3 par value 08/12/2005   M   349 A $ 4.875 59,314 (1) D  
Class B Stock, $3 par value 08/12/2005   M   40,431 A $ 7.66 309,241 D  
Class B Stock, $3 par value 08/12/2005   M   9,301 A $ 4.78 318,542 D  
Class B Stock, $3 par value 08/12/2005   M   4,651 A $ 4.875 323,193 D  

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 3)
2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (Month/Day/Year) 3A. Deemed Execution Date, if any (Month/Day/Year) 4. Transaction Code
(Instr. 8)
5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4, and 5)
6. Date Exercisable and Expiration Date
(Month/Day/Year)
7. Title and Amount of Underlying Securities
(Instr. 3 and 4)
8. Price of Derivative Security
(Instr. 5)
9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 4)
10. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4)
11. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Employee Stock Option (right to buy) $ 6.96 08/12/2005   M   80,000   11/02/2002 05/02/2012 Common Stock, $3 par value 80,000 $ 0 64,287 D  
Employee Stock Option (right to buy) $ 7.66 08/12/2005   M   367   11/02/2002 05/02/2007 Common Stock, $3 par value 367 $ 0 0 D  
Employee Stock Option (right to buy) $ 7.66 08/12/2005   M   2,670   01/01/2003 05/02/2007 Common Stock, $3 par value 2,670 $ 0 11,697 D  
Employee Stock Option (right to buy) $ 7.66 08/12/2005   M   11,697   01/01/2003 05/02/2007 Class B Stock, $3 par value 11,697 $ 0 0 D  
Employee Stock Option (right to buy) $ 7.66 08/12/2005   M   14,367   01/01/2004 05/02/2007 Class B Stock, $3 par value 14,367 $ 0 0 D  
Employee Stock Option (right to buy) $ 7.66 08/12/2005   M   14,367   01/01/2005 05/02/2007 Class B Stock, $3 par value 14,367 $ 0 0 D  
Employee Stock Option (right to buy) $ 4.78 08/12/2005   M   699   08/12/2004 08/12/2012 Common Stock, $3 par value 699 $ 0 4,301 D  
Employee Stock Option (right to buy) $ 4.78 08/12/2005   M   4,301   08/12/2004 08/12/2012 Class B Stock, $3 par value 4,301 $ 0 0 D  
Employee Stock Option (right to buy) $ 4.78 08/12/2005   M   5,000   08/12/2005 08/12/2012 Class B Stock, $3 par value 5,000 $ 0 0 D  
Employee Stock Option (right to buy) $ 4.875 08/12/2005   M   349   08/22/1998 08/22/2006 Common Stock, $3 par value 349 $ 0 901 D  
Employee Stock Option (right to buy) $ 4.875 08/12/2005   M   901   08/22/1998 08/22/2006 Class B Stock, $3 par value 901 $ 0 0 D  
Employee Stock Option (right to buy) $ 4.875 08/12/2005   M   1,250   08/22/1999 08/22/2006 Class B Stock, $3 par value 1,250 $ 0 0 D  
Employee Stock Option (right to buy) $ 4.875 08/12/2005   M   1,250   08/22/2000 08/22/2006 Class B Stock, $3 par value 1,250 $ 0 0 D  
Employee Stock Option (right to buy) $ 4.875 08/12/2005   M   1,250   08/22/2001 08/22/2006 Class B Stock, $3 par value 1,250 $ 0 0 D  

Reporting Owners

Reporting Owner Name / Address Relationships
 Director  10% Owner  Officer  Other
FRIERSON DANIEL K
THE DIXIE GROUP
345-B NOWLIN LANE
CHATTANOOGA, TN 37421
  X   X   Chairman of the Board and CEO  

Signatures

 Steven R. Barrett, by power of attorney for Daniel K. Frierson   08/16/2005
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1) Includes 3,567 shares allocated to the Reporting Person's account under the Issuer's 401(K) plan.

Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.

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