Relations between Paraguay and Brazil have been historically close, and at the same time, unequal and intense. With the resurgence of Brazil as an important actor in the region, an antique problem between both countries intensifies: land grabbing of Brazilian companies in Paraguay. With the presidential takeover of Fernando Lugo, an outsider whose discourse focused on the peasant movement, a renovated hope took place regarding land issues, not being completely successful. This research work focused on getting to know the way land grabbing from Brazil on Paraguay modified and/or hardened the relations between both countries during Lugo’s presidency. For answering this, the methodology used was process tracing, along with constructivism and another theories of foreign policy. Through the review of the gaceta oficial, laws, news, interviews and bibliographic analysis, it was concluded that the relations were barely modified from this problem, because other topics are more relevant in the relation between both countries, and the economic development model of Paraguay favors the foreign investment at all costs.