Butia paraguayensis is a species of Butia palm tree found in the cerrado region of South America. Its natural range runs from Mato Grosso do Sul and São Paulo in southern Brazil through Paraguay to northern Argentina and Uruguay. It was given the name dwarf yatay palm in English by 2000, and it is locally known as yata'i in Guaraní in Paraguay, or butiá-do-cerrado in Portuguese in Rio Grande do Sul, Brazil.