She was a daughter of Count Philipp Charles of Erbach-Fürstenau and Michelstadt (1677–1736), who was also Lord of Breuberg, and his first wife Countess Charlotte Amalie of Kunowitz (1677–1722).

Caroline married on 19 June 1726 at Fürstenau Castle Duke Ernest Frederick II of Saxe-Hildburghausen.

The couple lived first in Königsberg in Bayern where the Hereditary Prince Charles Frederick Ernest was born.

After the death of Caroline's husband in 1745 she ruled as regent for her minor son Charles Frederick Ernest.

[1] She restructured the Code of Criminal Procedure and banned the sale of a fief, allodial title or real estate without authorization by the sovereign.