Encarnación is a city in southeastern Paraguay. It is situated 235 miles south-east of the capital Asunción on the River Paraná, opposite the Argentine city of Posadas. The two cities are linked by the San Roque González de Santa Cruz Bridge. Encarnación is the capital of the department of Itapúa and has a population of 69,769 (2002 census).

The city was founded by the Jesuits in 1615. It gained in importance after the coming of the railway in 1854. Today the city is divided into two main sections - the old city by the river and the newer business district inland. Because of its mild climate Encarnación is often called "The Pearl of the South".

Most of the inhabitants are of Guarani/Spanish descent as in the rest of Paraguay but there are also minorities of Germans, Ukrainians, Japanese, Arabs, New Zealanders, Chinese and Poles.

Encarnación was the birthplace of Alfredo Stroessner, dictator of Paraguay from 1954 to 1989.