-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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MIC-Info: RSA-MD5,RSA,
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<SEC-DOCUMENT>0001181431-06-040694.txt : 20060706
<SEC-HEADER>0001181431-06-040694.hdr.sgml : 20060706
<ACCEPTANCE-DATETIME>20060706142254
ACCESSION NUMBER:		0001181431-06-040694
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20060703
FILED AS OF DATE:		20060706
DATE AS OF CHANGE:		20060706

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CARAUSTAR INDUSTRIES INC
		CENTRAL INDEX KEY:			0000825692
		STANDARD INDUSTRIAL CLASSIFICATION:	PAPERBOARD MILLS [2631]
		IRS NUMBER:				581388387
		STATE OF INCORPORATION:			NC
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		3100 JOE JERKINS BLVD
		CITY:			AUSTELL
		STATE:			GA
		ZIP:			30106
		BUSINESS PHONE:		7709483101

	MAIL ADDRESS:	
		STREET 1:		P O BOX 115
		CITY:			AUSTELL
		STATE:			GA
		ZIP:			30168

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			CASEY DANIEL P
		CENTRAL INDEX KEY:			0001143773

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-20646
		FILM NUMBER:		06947530

	BUSINESS ADDRESS:	
		STREET 1:		GAYLORD CONTAINER CORP
		STREET 2:		500 LAKE COOK RD STE 400
		CITY:			DEERFIELD
		STATE:			IL
		ZIP:			60015
		BUSINESS PHONE:		8474055531

	MAIL ADDRESS:	
		STREET 1:		ONE NORTH ARLINGTON
		STREET 2:		1500 WEST SHURE DRIVE STE 500
		CITY:			ARLINGTON HEIGHTS
		STATE:			IL
		ZIP:			60004-7803
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>rrd123712.xml
<DESCRIPTION>THIRD QUARTER 2006 DIRECTOR FEE
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2006-07-03</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0000825692</issuerCik>
        <issuerName>CARAUSTAR INDUSTRIES INC</issuerName>
        <issuerTradingSymbol>CSAR</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001143773</rptOwnerCik>
            <rptOwnerName>CASEY DANIEL P</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>852 PROUD CLARION COURT</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>NAPERVILLE</rptOwnerCity>
            <rptOwnerState>IL</rptOwnerState>
            <rptOwnerZipCode>60540</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <transactionDate>
                <value>2006-07-03</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>J</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
                <footnoteId id="F1"/>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>798</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>9.00</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>9620</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <derivativeTable>
        <derivativeHolding>
            <securityTitle>
                <value>D.E.P. 2004 Options</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>14.11</value>
            </conversionOrExercisePrice>
            <exerciseDate>
                <value>2004-07-01</value>
            </exerciseDate>
            <expirationDate>
                <value>2014-07-01</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>930</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>930</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeHolding>
        <derivativeHolding>
            <securityTitle>
                <value>D.E.P. 2005 Options</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>9.81</value>
            </conversionOrExercisePrice>
            <exerciseDate>
                <value>2005-12-09</value>
            </exerciseDate>
            <expirationDate>
                <value>2015-12-09</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>3000</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>3000</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeHolding>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">Shares awarded as payment of Directors retainer fee</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/ Lee Gentry, as attorney in fact</signatureName>
        <signatureDate>2006-07-06</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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