The new guerrilla group known as the Paraguayan People's Army, or EPP, is unique as a Marxist insurgency against a Marxist-sympathetic populist government. Although still small they appear to be growing. The evidence indicates that EPP is a serious group that has been in development for more than twenty years. They have an ideology and a strategic plan that they are systematically carrying out. They are anything but amateurs. They have acquired training and assistance from the Colombian FARC, if not others. They have built up funds through bank robberies and kidnappings, and gradually they are expanding their operations. While sometimes referred to as a "foquista" movement, the comparison falls short. What distinguishes EPP is the significant support base they have systematically built up among the radical elements of the Paraguayan rural peasantry, particularly in the north of the country. So far the state has responded by sending contingents of policemen and soldiers to cordon off and search rural areas in San Pedro and Concepcion. These operations appear to have produced little result. This article discusses the EPP's history and dynamics.