It took its original name from a nearby range of hills, known as the Cuchilla de Caraguatá.

The word 'Caraguatá' refers to a local plant and is also the name of a nearby stream.

The village is situated in the east of the department, 6.5 kilometres (4.0 mi) southeast of Las Toscas, on km.

In Cruz de los Caminos is Public School 61, while 2.7 kilometres (1.7 mi) to its west, on Route 6 is Public School 26, next to the police station.

About 4.6 kilometres (2.9 mi) west-southwest of Las Toscas is the rural area Public School 28, named Costas de Caraguatá.