Germany's eye-popping abundance of talent in midfield was clearly obvious as the hosts carved out a dozen clear scoring chances but their backline was leaking badly in the first half, letting in three goals.
Goals from Ilkay Guendogan and Thomas Mueller cancelled out Paraguay's surprise 2-0 lead and Lars Bender levelled late in the game after Miguel Samudio had again put the visitors ahead on the stroke of halftime.
Germany, top of World Cup qualifying Group C with 16 points from six games, host Austria, five points behind, on September 6 before travelling to the Faroe Islands four days later. Sweden and Ireland also have 11 points.
(Reporting by Karolos Grohmann; Editing by Ken Ferris)
