Karatara is a town in Knysna Local Municipality in the Western Cape province of South Africa.

Settlement and forestry station on the Karatara River which flows southwards into Swartvlei.

The name is of Khoekhoen origin and probably means 'horse hill', after a hillock to the north.

Previously the Karatara River was known as the Tsao or Witterivier.

This Western Cape location article is a stub.