France have won through to the Round of 16 after winning by the odd goal in seven, following a classic FIFA U-17 World Cup contest in Puerto Montt.
France scored in the opening minutes through Bilal Boutobba, and soon doubled their lead with the first of two goals from Nanitamo Ikone.
However, with perfect timing Paraguay pulled a goal back seconds before the break thanks to an Arturo Aranda penalty, with the same player earning his reward after hitting the post earlier with a free-kick.
The second half proved more of the same with goals and end-to-end action, though France were good value for the victory.
Paraguay twice drew level either of the hour mark as the teams shared three goals in a five-minute spell as each pushed forward at every opportunity.
However, it was Ikone that was to have the final say 19 minutes from the end, when he cut in and caught out the goalkeeper with a snap shot that proved to be the winner.
The win maintains France perfect record, as well as their goalscoring form, following an opening 6-1 victory over New Zealand. Paraguay, for their part, are still well placed thanks to their opening 4-1 win against Syria.