Paracho de Verduzco (often called merely Paracho) is a small city located in Michoacán, Mexico. Located at , about 100 kilometers (60 mi) west of state capital Morelia, it serves as the municipal seat for the surrounding municipality of Paracho. It has a population of some 16,500. The word Paracho means "Offering" in the Chichimecan dialect.
Throughout Mexico, Paracho is known as The Guitar Capital of The World. This is because they are reputed to make the best sounding guitars in all of Mexico. The town is full of music shops that sell handmade stringed instruments. Some instruments that can be found in Paracho are: 10-string mandolins, armadillo-backed guitars and mandolins, and acoustic bass guitars, as well as regular guitars and mandolins. Many of the stores and workshops allow visitors to watch the guitar-making process directly.
A national music festival is held in Paracho once a year, usually the second week of August.