Paraguayan Guarani (PG) is a Tupian language spoken as an official language along with Spanish in Paraguay and with non-official status in Brazil and Argentina. While Paraguay shows unusual percentages of societal bilingualism compared to other Latin American countries, PG is in a diglossic relation to Spanish, with the latter language being the prestigious one in every case. PG differs from contemporary indigenous Guarani varieties and historical Jesuitical Guarani regarding the presence of Spanish in its lexicon and grammar. The century-long contact with Spanish influenced Guarani at phonological, morphosyntactic and lexical levels. PG should not be viewed as a monolithic mixed language, not only because it is comprised of a series of mixed lects that may or may not evolve in the direction of a bilingual mixed language, but also because the level and type of mixing of PG mixed lects are not characteristic of bilingual mixed languages to the extent that they do not show the genealogical lexicon-grammar split. Historically, PG has become a discursive strategy for the creation and negotiation of cross-linguistic and cross-cultural identities in Paraguay.