The southeastern border is formed by the Parana River, containing the Itaipu dam shared with Brazil. It is currently the largest hydroelectric power plant in the world, generating nearly all of Paraguay's demand for electricity. Another large hydroelectric power plant on the Paraná river is Yacyretá, shared by Paraguay and Argentina. Paraguay is currently the world's largest exporter of hydroelectric power.

The local climate ranges from subtropical to temperate, with substantial rainfall in the eastern portions, though becoming semi-arid in the far west.

Ethnically, culturally, and socially, Paraguay has one of the most homogeneous populations in Latin America. About 95% of the people are mestizos of mixed Spanish and Guaraní Indian descent. The only trace of the original Guaraní culture is the Guaraní language, spoken by 94% of the population. About 75% of all Paraguayans can speak Spanish. Guaraní and Spanish are both official languages. Small groups of Ethnic Italians, Germans, Japanese, Koreans, Chinese, Arabs, Brazilians, and Argentines settled in Paraguay and they have to an extent retained their respective languages and culture - particularly the Brazilians.

Paraguay's population is distributed unevenly throughout the country. About 56% of Paraguayans live in urban areas. The vast majority of the people live in the eastern region near the capital and largest city, Asuncion, that accounts for 10% of the country's population. The Chaco, which accounts for about 60% of the territory, is home to less than 2% of the population.

The country is predominantly Roman Catholic, with some Mennonite and other Protestant minorities.

Paraguayans express their culture in arts such as embroidery (aho poí) and lace making (ñandutí). Their music, which consists of lilting polkas, bouncy galopas, and languid guaranías played on the native harp. They also enjoy eating sopa paraguaya which is like a thick corn bread. It consists of many cheeses, onions, bell peppers, cottage cheese, yellow cornmeal, milk, seasonings, butter, eggs and fresh corn kernels.

The 1950s and 1960s saw the flowering of a new generation of Paraguayan novelists and poets such as José Ricardo Mazó, Roque Vallejos, and Augusto Roa Bastos.

The nation's upper classes are, typically, only a generation or two from the peasantry. That does not mean there is no social hierarchy, for the usual distinctions between town and country dweller, employer and laborer, and mental and manual worker still apply. But there is a fairly high degree of mobility between classes, and even the poorest peasant displays a strong degree of personal pride.

Social life revolves largely around an extended family of parents, children and blood relations as well as godparents. The Paraguayans' chief loyalty is to their family, and it, in turn, is their haven and support. Family interests determine to a large extent which political party they will join, to whom they will marry, what sort of job they will get, whether they will win a lawsuit, and—in some cases—whether they would be wise to emigrate for a time. Anyone outside the family, except for an old and trusted friend, is viewed with indifference, if not with suspicion.

Inside the family, conservative values predominate. Children must be obedient to their parents, and women are supposed to be subservient to their men. Godparents have a special relationship to the family, since usually they are chosen because of their favorable social position, in order to provide extra security for the children. Particular respect is owed them, in return for which the family can expect protection and patronage.

Communications in Paraguay

Foreign relations of Paraguay

Guaraní mythology

Guaraní language

List of cities in Paraguay

List of Paraguayans

Military of Paraguay

Music of Paraguay

Public holidays in Paraguay

Transportation in Paraguay