Caraz is a town in the Caraz District in the southeastern part of Huaylas Province of the Ancash Region in Peru.
One possibility is that it derives from the quechua word KGARA-PUNCU, meaning "leather door", as the doors in Caraz were once covered with leather.
Don Celso V. Torres maintains that the name comes from the quechua word KALLASH meaning sterile and without vegetation.
Another possibility is that it comes from the quechua word KJARAS, referring to the magüey plants found in the area.