By default rails asset pipeline adds images, stylesheets and javascripts. Here is the directory structure:

app
....assets
........images
........javascripts
........stylesheets

Now, we want to add fonts folder inside assets folder to that we can use various fonts in our web application. The directory structure should look like this:

app
....assets
.........fonts
.........images
.........javascripts
.........stylesheets

To make our fonts folder available, we will add following line to the Application class in config\application.rb file:

config.assets.paths << Rails.root.join("app", "assets", "fonts")

Now, we can add fonts to our CSS files like this:

@font-face
{
   font-family: ITCAvantGardeProBd;
   src:   url('/assets/7265b8d0-a67c-4a8b-84aa-273d1759270a.ttf') format('truetype');
   src:   url('/assets/85564178-fd88-4387-9226-0e632723ca24.eot?#iefix') format('embedded-opentype'),
          url('/assets/7265b8d0-a67c-4a8b-84aa-273d1759270a.ttf') format('truetype'),
          url('/assets/75d377f2-28ee-43f8-b231-44f8eba218c4.svg#75d377f2-28ee-43f8-b231-44f8eba218c4') format('svg');
   font-weight:   normal;
   font-style:    normal;
}

**Note: The url now starts with /assets/ instead of a proper path.