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Caraí is a Brazilian municipality located in the northeast of the state of Minas Gerais. Its population as of 2007 was estimated to be 21,530 people living in a total area of 1,240 km². The city belongs to the mesoregion of Jequitinhonha and to the microregion of Araçuaí. The elevation of the municipal seat is 750 meters. It became a municipality in 1948.

The economy is based on cattle raising, services, and subsistence agriculture, with the main crops being coffee (2,600 ha.), rice, beans, sugarcane, and corn. The cattle herd had 17,000 head in 2006. In 2005 there were 2633 rural producers but only 20 tractors. 8,700 persons were dependent on agriculture. As of 2005 there were 8 public health clinics, with none carrying out diagnosis and complete therapy. There was one hospital with 35 beds. Educational needs were met by 29 primary schools, 3 middle schools and 7 nursery schools. There were 231 automobiles in 2006, giving a ratio of 90 inhabitants per automobile (there were 525 motorcycles). There was 1 bank in 2007.

Neighboring municipalities are: Padre Paraíso - Catuji - Itaipé - Novo Cruzeiro - Araçuaí. The distance to Belo Horizonte is 536 km. The distance to the nearest major population center, Teófilo Otoni is 80 km.