The small town of Caramoan was then located at the tip of Caramoan Peninsula, a rugged place of land extending into the waters of the Maqueda Channel on the North and East and Lagonoy Gulf on the South. It was determined that the first name given to this place was Guta de Leche by the Dutch traders who operated a gold mine in Lahuy Island and frequented the area to trade with the natives, prior to the arrival of the Spaniards. The name was perhaps derived from the milkdrop stalagmites found among the rocks of Guta Port. But upon the arrival of the Spaniards, the place came to be called "Carahan" for the sea turtle, which was at that time to be found in great number along the shores of the Peninsula.

Caramoan is one of the thirty-five municipalities of the Province of Camarines Sur and is situated at the heart of the Caramoan Peninsula at the southernmost tip of Luzon. It occupies the lower eastern portion of the Province of Camarines Sur. It is bounded on the north by the town of Garchitorena and the Pacific Ocean; on the northeast by the island province of Catanduanes; on the south by Lagonoy Gulf; on the east by the Maqueda Channel and on the west by the municipality of Presentacion.

A season of French Survivor was filmed in the Islands of Caramoan.