This stitch is a very simple stitch, which does not incorporate knots, but loops.  It is worked from right to left.

I will be working over a single stitch line.

pearl_knot_1 …. pearl_knot_2
Fig 1: Begin by bringing out the needle at the right end on the stitch line, at a point A. Then, take the needle through B, which lies on the stitch line and bring it out from C, a point right below B.   Fig 2: Now, before pulling the stitch A-B tight, take the needle under it as shown. Do not pluck the fabric underneath.
pearl_knot_3   pearl_knot_4
Fig 3: Pull the needle out completely to get the first knot. Then, again, take the needle in through D, which lies on the stitch line and bring it out through E, a point right below D. The shorter this stitch, the more ’round’ and ‘pearled’ the look.
Continue the procedure for the entire length of the stitch line.
  Fig 4: A completed row of pearl stitch would look like this.
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