Vessels sailing under the Paraguay Country Flag are required to have on board this flag as part of flag state requirements that derive from maritime regulations in the International Code of Signals and the International Safety Management (ISM) Code. These codes are published by the International Maritime Organization (IMO) as an ongoing effort to reinforce maritime safety procedures and communications to the international maritime community. Fleet management companies and ship owners are responsible to ensure that each vessel in their respective fleets have the appropriate flag signage onboard to be in compliance. This flag is used to identify the flag state a vessel is sailing under and to communicate with other vessels under the provisions of the International Code of Signals.

The Paraguay Country Flag is represented by three equal horizontal stripes colored red, white and blue from top to bottom, respectively. Centered in the white stripe is an emblem that displays the State Coat Of Arms on the front. This emblem shows an olive branch and a palm branch surrounding a blue disk holding a five pointed gold star. Banded around this scene are the words Republic Of Paraguay written in Spanish. The back side of the emblem shows the National Treasury Seal, consisting of the words, Paz Y Justica (peace and justice) surmounting a lion guarding the red Phrygain cap. The Paraguay Country Flag is designated to hold a proportional ratio of 3:5, height to length, respectively.

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