The result means Oscar Tabarez's men will finish third in Group B, while Paraguay remain top and could win the group if Argentina fail to beat Jamaica
Uruguay and Paraguay played out a 1-1 draw in Copa America Group B as Oscar Tabarez's men got the point they needed to clinch a place in the quarter-finals of the competition.
Jose Gimenez powered a header past a helpless Justo Villar to put the tournament holders in front, before Paraguay equalised with a header of their own through Lucas Barrios.
Tabarez's men looked the more likely to claim a crucial second goal, but were forced to settle for a point that is likely to see them meet hosts Chile in the last-eight.
Paraguay's opponents will depend on both the outcome of Argentina's match with Jamaica later on Saturday and the make-up of Group C, which currently sees all four sides level on points after two games each.
Amid a scrappy and keenly-contested opening, clear-cut chances were few and far between until Nelson Valdez failed to convert a Bruno Valdez knock-down from inside the six-yard box.
Despite failing to take advantage of the game's first opening, Paraguay nonetheless gained momentum.
Gimenez was required to clear when Nestor Ortigoza did well to find Nelson Valdez before the Atletico Madrid defender showed his quality at the other end as Uruguay edged ahead.
The centre-back rose highest to power home Carlos Sanchez's corner past Villar in the Paraguay goal 29 minutes in.
Gimenez's centre-back partner Sebastian Coates threatened to double the lead, almost connecting with Diego Rolan's deep cross before the latter tested Villar from a corner.
Now on top, Uruguay sought to press home their advantage before the break as Edinson Cavani prodded a shot wide, but it was Paraguay who had the final say in the first half.
Barrios outmuscled Gimenez to meet Edgar Benitez's lofted corner and level matters with his second goal of the competition.
Cavani had the first effort of the second half - nodding Maxi Pereira's delivery wide - as the holders piled on the pressure against a Paraguay side shorn of the impressive Ortigoza due to an apparent muscle problem.
Substitute Christian Stuani headed wide, Cavani had a volley saved and Fernando Muslera was also required to save from Derlis Gonzalez in the final moments, as Uruguay now look ahead to likely a quarter-final meeting with unbeaten Group A winners Chile.