La Paz de Carazo is a municipality in the Carazo Department of Nicaragua. It is one of the department's smaller settlements, located in the country's Pacific region rather than in the better-known La Paz of Bolivia.
Like other municipalities in Carazo, it forms part of a department whose economy has traditionally centred on agriculture, particularly coffee and other crops suited to the area's volcanic soils and elevation. The department lies within easy reach of the Pacific coast and the colonial city of Granada, placing La Paz de Carazo within Nicaragua's more densely populated western half.
Detailed published information about the municipality is limited, and its administrative status as a Carazo municipality is the principal fact consistently recorded about it.