Theory:

Rhyming words are defined as two or more words that have similar or the same sound at the end. If any two (or more) words rhyme, it means it sounds similar. It may be expressed as a repeating pattern that makes the text sound interestingmusical and pleasing.
Example:
1. mat - hat
2. time - mime
3. bill - drill
4. goat - coat - moat
5. spare - care - mare - dare
Rhyming words have been used in poetry to establish the rhythm of the language. It makes it easier to understand the poetry, learn similar sounding words and breaks the monotony of big texts. It has been used so much that in fact, that short poems have been termed as "rhymes" to make it appealing to kids.
Let us list down the uses of rhyming words:
  1. Helps to understand the structure of the English language.
  2. Makes the text sound pleasing, musical, interesting, and breaks the monotony.
  3. Helps to understand the patters of rhythms.
  4. Helps the students to remember words easily and thereby predict new words.
  5. Arouses interest to try writing poems.
  6. Differentiates prose from poetry - eases the process of memorization.
Important!
Rhyming words can also be used as an aid in pronunciation. With the help of the familiar words, one might be able to pronounce the lesser known words with ease.
Examples of rhyming words from the lesson "Taro's Reward":
  
Sl. No.
Words
Rhyming Words
1
YoungLung; sung
2
DaySay; clay; bay; pay
3
WoodGood; could
4
HardCard; Bard
5
Money
Sunny; funny
6
MadeTrade; fade
7
SadBad; mad
8
SonFun; bun; one
9
HutBut; cut; nut
10
Saké Okay
11
BlowFlow; low
12
ColdFold; mold; gold; old
13
Bed Fed; thread; spread
14
EarnLearn; burn; turn
15
OutShout; about
16
DryTry; fry; cry 
17
StopChop; top; drop
18
RanFan; ban
19
SoundFound; bound
20
Drown
Town; frown; crown
21
DreamStream; team; beam
22
MoreTore; core; bore
23
Gave
Shave; pave; cave
24
Kind 
Bind; find
Important!
However, rhyming words should not be confused with homophones! Homophones are words with the same pronunciation. They are different words with different meanings but with similar pronunciation.
 
For example: 
 
Wood - would
Son - sun
Made - maid
One - won
To know more about rhyming words, click here.