Amambay is a department in Paraguay. The capital is Pedro Juan Caballero.

Pedro Juan Caballero is a Paraguayan city in the Amambay Department of which it is the capital. The city lies on the border with the Brazilian city of Ponta Porã in the state of Mato Grosso do Sul and is known as a centre for cheap electronic and consumer goods, and also as a centre for drug smuggling. This city is the highest city in Paraguay at 670 m (2201 ft) above sea level and is named after Pedro Juan Caballero. Pedro Juan Caballero counts with the Dr. Augusto Roberto Fuster International Airport and the country's most modern shopping centre, the Shopping Dubai, which cost US$30million.