The history of the Paraguay national football team began in 1910 when the national team played a friendly match. The Paraguay played its first international in 1919, a 5–1 loss to Argentina. Paraguay have won the Copa América twice, in 1953 and 1979.

The beginning (1900–1930) Soon after the introduction of football in Paraguay by Williams Paats, the Liga Paraguaya de Futbol (today Asociación Paraguaya de Fútbol) was created in 1906. The first national football team was organized in 1910 when an invitation by the Argentine club Hércules of Corrientes was received to play a friendly match. Members of that first national team where F. Melián, G. Almeida, A. Rodríguez, M. Barrios, P. Samaniego, J. Morín, Z. Gadea, D. Andreani, C. Mena Porta, B. Villamayor, M. Rojas and E. Erico. The match ended in a 0–0 draw.

Because of the increasing number of invitations to play matches and international tournaments, the Asociación Paraguaya de Fútbol decided to officially create the national team and select the striped red and white jerseys that until this date remain as the official colours (taken from the Paraguayan flag). In late 1919, Paraguay accepted the invitation to play the 1921 Copa América and in order to prepare for that occasion a number of friendly matches were played between 1919 and the start of the tournament in 1921. The first of those friendly matches was a 5–1 loss against Argentina, and it marked the first international game by the Paraguay national football team. When the 1921 Copa América finally arrived, Paraguay surprised everybody by beating then three-time South American champions Uruguay by 2–1, being this the first match in an official competition for the Paraguayan football team. Paraguay eventually finished fourth in the tournament and became a regular participant of the tournament for the next editions.

In 1930, Paraguay participated in the first World Cup, organized by Uruguay. In the first round, Paraguay debuted and lost to the United States (0–3), to then defeat Belgium (1–0) with a goal by Luis Vargas Peña. Only one team was to advance from the group stage, and the U.S. left Paraguay behind.

First taste of success (1930–1970)

After strong participations in the Copa América tournaments of 1929, 1947 and 1949 (where Paraguay finished in second place), Paraguay was ready for their next World Cup competition.

The return to the World Cup was in 1950, where Paraguay faced Sweden and Italy in Group 3. Paraguay failed to advance to the next round after a 2–2 draw against Sweden and a 2–0 loss against Italy.

The first big success came in 1953 when Paraguay won the Copa América disputed in Peru. In their road to the championship, Paraguay defeated Chile (3–0), Bolivia (2–1) and Brazil (2–1); and tied against Ecuador (0–0), Peru (2–2) and Uruguay (2–2). Since Paraguay and Brazil were tied in points at the end of the tournament, a final playoff match was played between them, with Paraguay winning the final by 3–2. Key players of the campaign included Ángel Berni, Heriberto Herrera and Rubén Fernández. The coach was Manuel Fleitas Solich.

For the 1958 World Cup, Paraguay surprisingly qualified ahead of Uruguay (beating them 5–0 in the decisive game) with a team that contained a formidable attacking lineup with stars such as Juan Bautista Agüero, José Parodi, Juan Romero, Cayetano Ré and Florencio Amarilla. In their first game in Sweden, Paraguay were 3–2 up against France in a game they lost 7–3. A 3–2 win over Scotland and a 3–3 draw with Yugoslavia saw Paraguay finish third in their group.

The departure of several of their stars for European football (mainly Spain) resulted in a weakening of Paraguay's football fortunes somewhat, but they were only edged out by Mexico in the 1962 qualifiers.

More continental success (1970–1990)

Paraguay fell short in subsequent World Cup qualifying campaigns, but Copa América success (and that of one of its premier clubs Olimpia in the Copa Libertadores) in 1979 shored up Paraguay as a solid player on the continent.

The 1979 Copa América was won by Paraguay after finishing first in Group C (which had Uruguay and Ecuador as well) with two wins and two draws. In the semi-finals, Paraguay defeated Brazil by an aggregate score of 4–3. In the finals, Paraguay defeated Chile by an aggregate score of 3–1 to claim its second continental crown. Players such as Romerito, Carlos Alberto Kiese, Alicio Solalinde, Roberto Paredes, Hugo Ricardo Talavera and Eugenio Morel where an important part of the team, coached by Ranulfo Miranda.

Paraguay ended a 28-year absence from the World Cup in 1986 with a team starring Roberto Fernández in goal; Cesar Zabala, Rogelio Delgado and Juan Bautista Torales in defence; Jorge Amado Nunes and Vladimiro Schettina in midfield; midfield playmaker Romerito and strikers Roberto Cabañas, Ramón Ángel María Hicks and Rolando Chilavert (the older brother of José Luis Chilavert). In first round matches, Paraguay defeated Iraq (1–0, goal scored by Romerito) and then tied Mexico (1–1, goal scored by Romerito) and Belgium (2–2, both goals scored by Roberto Cabañas). They reached the second round where they were beaten 3–0 by England.

The golden generation (1990–2011)

A drought followed once again, as Paraguay failed to reach the 1990 and 1994 World Cups.

In 1992, Paraguay won the South American Pre-Olympic tournament, which guaranteed a spot in the 1992 Summer Olympics football competition. In the Olympics, Paraguay finished second in its group and were eliminated by Ghana in the quarter-finals.Since 1992, squads for Football at the Summer Olympics have been restricted to three players over the age of 23. The achievements of such teams are not usually included in the statistics of the international team. The most important aspect of that Paraguay team was the emergence of new young players like Carlos Gamarra, Celso Ayala, José Luis Chilavert, Francisco Arce and José Cardozo, which became part of the "golden generation" that led Paraguay to three-straight World Cups and good performances in continental competitions, establishing Paraguay as one of the top teams in South America alongside Brazil, Argentina, and Uruguay.

1998 FIFA World Cup qualification

Paraguay concluded the qualifiers in second position, one point below Argentina.

1998 FIFA World Cup

The Albirroja returned to the FIFA World Cup final stages for the first time since 1986, coached by the Brazilian Paulo César Carpegiani. The squad featured experienced players such as Celso Ayala, Carlos Gamarra, Roberto Acuña, Catalino Rivarola and national team captain José Luís Chilavert, who all had at least 40 appearances to their name. Paraguay were drawn into Group D, alongside Bulgaria, who had finished in fourth place in 1994; Nigeria, which featured gold medalists from the 1996 Summer Olympics and players from 1994; and also Spain, who had made it to the second round stage at the last four previous World Cups. On 12 June, Paraguay would face Bulgaria were the match would end in a 0–0 draw. The match saw Bulgarian midfielder Anatoli Nankov receive a red card in the 89th minute. On 19 June, Paraguay faced Spain in Saint-Étienne as the two sides drew 0–0.

Paraguay were then scheduled to face Nigeria in their last group stage fixture on 24 June. The Albirroja had claimed just two points from two matches and Nigeria, on six points, were already through to the next round after winning their first two group stage matches. Paraguay required all three points from the fixture against Nigeria if they were to progress to the second round. In the first minute of the match, Celso Ayala headed Paraguay into the lead, latching on to a free kick, however, Wilson Oruma equalized for Nigeria in the 10th minute. Miguel Ángel Benítez then scored for Paraguay in the 58th minute, and as the second half concluded, José Cardozo received the ball in front of goal to put the ball low past goalkeeper Peter Rufai. The match concluded 3–1 in favour of Paraguay as they finished in second position of the table with five points, and they would advance to the Round of 16, despite Spain's 6–1 win over Bulgaria but only finishing with four points on the table, to face hosts France. On 28 June, France and Paraguay met in Lens. France were without their number #10 Zinedine Zidane, and were held 0–0 by Paraguay for the entire duration of the 90 minutes. In the 114th minute of extra-time, Laurent Blanc scored for France, eliminating Paraguay via the golden goal rule. At the conclusion of the competition, defender Carlos Gamarra and goalkeeper and captain José Luís Chilavert were selected as part of the All-Star Team.

1999 Copa América

Paraguay were hosts of the 1999 Copa América, disputed in four cities throughout the country, which saw three (Estadio Feliciano Cáceres, Monumental Río Parapití and Estadio Antonio Oddone Sarubbi) of the five venues undergo maintenance and renovation before the respective stadiums would be opened again for the competition. Paraguayan–Uruguayan Ever Hugo Almeida had been named by the Paraguayan Football Association was head coach of the national team, selecting a relatively experienced squad for the competition, with the majority of the players having been present at the 1998 World Cup one year earlier. Three players under the age of 20 were included in the squad, including 19-year-old Cerro Porteño player Diego Gavilán; 19-year-old River Plate winger Nelson Cuevas, who had participated for Paraguay U20 at both the 1999 South American Youth Championship and the 1999 FIFA World Youth Championship; and ultimately 17-year-old Roque Santa Cruz, who had been a big influence in Paraguay's U20 team after scoring three goals at the 1999 FIFA World Youth Championship and three goals at the 1999 FIFA World Youth Championship. Santa Cruz had debuted for Olimpia Asunción two years earlier at the age of 15 and had already participated at and scored in the 1998 Copa Mercosur. Regarded as prospect for Paraguayan football, prior to the commencement of the competition, Santa Cruz scored his first international goal for Paraguay in a 3–2 friendly match defeat against Uruguay on 17 June at the Estadio Antonio Oddone Sarubbi in Ciudad del Este. Controversially, goalkeeper José Luís Chilavert demonstrated humble leader ship after refusing to participate at the tournament, complaining bitterly about the incompetence of the local directors and despite being officially honored by the latest government, he believed his country should have invested money in education rather than football. Chilavert was replaced by Ricardo Tavarelli.