Use following code for setting up Nginx for rails.
http { include /etc/nginx/mime.types; default_type application/octet-stream;</code> log_format main '$remote_addr - $remote_user [$time_local] $request ' '"$status" $body_bytes_sent "$http_referer" ' '"$http_user_agent" "$http_x_forwarded_for"'; access_log /var/log/nginx/access.log main; # Timeouts client_body_timeout 5; client_header_timeout 5; keepalive_timeout 55; send_timeout 5; upstream mongrel_cluster { server 127.0.0.1:3000; server 127.0.0.1:3001; server 127.0.0.1:3002; } server { listen 80; server_name localhost.localdomain; #charset koi8-r; #access_log logs/host.access.log main; #for images routing location ~* ^/(images|stylesheets|javascripts).+\.(html|jpg|jpeg|gif|png|ico|css|zip|tgz|gz|rar|bz2|doc|xls|exe|pdf|ppt|txt|tar|mid|midi|wav|bmp|rtf|js)$ { root /var/www/html/Projects/Project_Name/public; } # concurs with nginx's one location / { proxy_pass http://mongrel_cluster; #Fix for host name and redirection to domain } } <code>