Paraguay–Taiwan relations are foreign relations between Paraguay and Taiwan. Both governments established diplomatic relations on July 8, 1957. Paraguay is one of the 22 countries in the world (and the only one in South America) to recognize the Republic of China instead of the People's Republic of China as the sole and legitimate government of China, including the island of Taiwan. Paraguay has an embassy in Taipei. Taiwan has an embassy in Asuncion and a Consulate-General in Ciudad del Este.
The governments of Paraguay and Taiwan established diplomatic relations on July 8, 1957. Over the following decades, the two governments signed the Cultural Connvention (1961), Treaty of Friendship (1968), and Conventions of Tourism and Investments (1975). 
The partnership between the anti-communist governments of General Alfredo Stroessner and Generalissimo Chiang Kai-shek was quite natural. Many Paraguayan officers went for training in Fu Hsing Kang College in Taiwan.
The ouster of Stroessner in 1989, and his successor Andrés Rodríguez's reinventing himself as a democratically elected president, were immediately followed by invitations from the People's Republic of China to switch diplomatic recognition. However, the experienced general and politician Wang Sheng who happened to serve as Taiwan's ambassador at the time, and his diplomatic staff, were able to convince the Paraguayans that continuing the relationship with ROC, and thus keeping Taiwan's development assistance and access to Taiwan's markets, would be more advantageous for Paraguay. As the ROC Commercial Attaché at Asunción, Tseng Cheng-te, explained later, "I tried constantly to figure out what we could buy from them. It was very difficult, because they have nothing to offer".
Taiwan provided assistance to Paraguay on a number of economic development projects throughout the 1990s, and has extended large loans to Paraguay; as of early 2009, Taiwan's government was offering payment deferral on a $400 million outstanding loan.
Traditionally, Paraguayan diplomats at the United Nations backed regular proposals at the UN General Assembly sessions for the return of Taiwan into the United Nations' Organization. However, in the fall of 2008, the recently elected Paraguyan president Fernando Lugo (whose inauguration, just a few days previously, had been attended by Taiwan's Ma Ying-jeou) announced that his country would not do so at the 63rd annuals session of the General Assembly.
In 2004, Taiwan and Paraguay attempted to negotiate a free trade agreement, but having to obtain approval from Paraguay's MERCOSUR's partners (none of which has diplomatic relations with Taiwan) made the process difficult. As of April 2009, the proposed treaty was still described as being negotiated.
- Relaciones de la República de China (Taiwán) y la República del Paraguay (Relations of the Republic of China (Taiwan) and the Republic of Paraguay) (At the official site of the R.O.C. Embassy in Paraguay) (Spanish)
- DIPLOMATIC RELATIONS WITH THE REPUBLIC OF CHINA (TAIWAN)>BILATERAL AGREEMENTS (Embassy of Paraguay in the Republic of China)
- Marks, Thomas A., Counterrevolution in China: Wang Sheng and the Kuomintang, Frank Cass (London: 1998), ISBN 0-7146-4700-4. Partial view on Google Books. pp 289. 293.
- Marks, p. 301
- Taiwan to allow Paraguay to defer loan payments: minister "The China Post", March 9, 2009
- Taiwan's UN Campaign: The Ministry of Foreign Affairs (MOFA) expresses its heartfelt gratitude and sincere respect to Taiwan's three diplomatic allies for speaking in favor of Taiwan in the UN General Debate
- "Taiwan-China balancing act in Latin America" (PDF).
- "Taiwan denies ties with Paraguay are shaky". Asia-Pacific News. September 2, 2008.
- Melody Chen (7 July 2004). "MOEA set to negotiate FTA with Paraguay". Taipei Times.
- Jessie Ho (15 February 2005). "Paraguayan FTA safe: government". Taipei Times.
- Bilaterals.org: Taiwan
- Paraguayan Ministry of Foreign Relations about relations with Taiwan
- Embassy of Taiwan in Asunción
- Embassy of Paraguay in Taipei