Molecular evidence supports the classification of the caracal as a monophyletic genus. It is closely related to the African golden cat (Caracal aurata) and the serval (Leptailurus serval). In the past it was classified with Lynx and Felis but is not closely related to them.

Eight subspecies of the caracal were recognised in the past. However, no recent morphological or molecular studies have been conducted on the caracal. If the phylogeographical patterns found in lions, cheetah and savanna ungulates, also apply to the caracal, probably three subspecies could be distinguished: 

• Caracal caracal caracal in southern and East Africa
• Caracal caracal nubicus in North and West Africa and 
• Caracal caracal schmitzi in the Middle East to India

Further studies are needed to establish the geographic variation of the caracal.

The caracal is a mid-sized cat with a slender, conspicuous, tall body and long legs. It is the largest of the African small cats. The fur of the caracal is short and tawny-brown to brick-red coloured without any markings, and its underparts are whitish. Near the nose and the eyes, the face is marked with dark lines and white spots. Melanistic animals also occur. In central Israel, there was a dark form described with adults coloured grey and young kittens almost black. Its common name comes from the Turkish word karakulak. It means “black ears” and derives from its special ears which are black on the back and have a triangular shape tipped with 4-5 cm long black hair tufts. Its tail is short and measures about a third of the head and body length. Between its pads, it has stiff hairs as an adaptation to travelling over sand. As with other desert species the caracal has excellent sight and hearing. There is sexual dimorphism with males being on average larger than females in all respects. The caracals in India are somewhat smaller than those of Sub-Saharan Africa 

The caracal is solitary and is predominantly nocturnal, but it can also be active during the day depending on its habitat (particularly in protected areas) and the daily temperatures. The species increases its daytime activity in winters. Usually the caracal may rest in dense vegetation or a rocky crevice, and may also use a burrow for shelter during warm days. The caracal primarily hunts on the ground in spite of being an adept climber. It sometimes used trees to cache larger kills, though. The caracal is known for its extraordinary jumping - it can jump two meters or more into the air. It often stalks birds and is then able to spring up and grab them when they flush. Traditionally, people in India and Iran tamed and used them for sport to watch contests with fenced caracals taking pigeons in this way. The caracal is adapted to dry habitats and is able to satisfy its moisture requirements from its prey when necessary. The caracal sometimes gets killed by other carnivores such as lions, hyenas and leopards when ranges overlap. Black-backed jackals can have limiting effects on caracals, but also vice-versa.

The home ranges of male caracals are larger than those of the females and typically include several female ones. Home ranges in arid areas are larger than the ones in more moist habitats. In the Namibian ranch land, the home range of three males averaged 316.4 km². In South Africa, males in the Cape Province had a home range of 31–65 km² and females of 4–31 km². Home ranges are marked with urine, faeces and claw marks.

The reproductive season probably takes place all year round, but in the Sahara, breeding is reported to occur primarily in mid-winter. Females seem to copulate with several males in a “pecking order” which is related to the age and size of the male. Estrus lasts for 5-6 days, the estrus cycle for 14 days and the gestation for 78–80 days. The first reproduction takes place at 12.5–15 months for males and at 14–16 months for females. Gametogenesis can occur somewhat earlier. One female gave birth at 18 years and caracals may have one litter annually. Age at independence is with 9–10 months.

The caracal is a generalist predator. It preys mainly on a variety of small to medium sized mammals and birds. It usually takes prey weighing less than 5 kg such as young antelopes, hares, rodents, hyraxes, birds, mice and sometimes also invertebrates, fish and reptiles. The caracal has also the ability to take snakes and is known to also kill and eat other small to medium-sized carnivores up to black-backed jackals and aardwolfs. The caracal is able to kill prey measuring 2–3 times its own size such as adult springboks or young kudus and occasionally takes larger prey such as goitered gazelles. The caracal also preys on domestic animals such as sheep, goats and poultry in some regions. In South Africa, it is also reported to prey on farmed game animals, especially on juvenile individuals. Outside protected areas, domestic stock can make up a significant part of the caracals diet. The caracal often scavenges. In Turkmenistan, tolai hares were the most important prey species. In Algeria, caracals to the northwest of Lake Chad are reputed to hunt dorcas gazelle, hence the local Toubou name is “gazelle cat”. In Iran, rodents seem to play an important part in the diet of the caracal and ground living birds are potential prey. In the Bahram’gur protected area, Iran, the main prey species were cape hare and various rodents including Libyan jird. The caracal occupies a broad unspecialized niche which bridges the small-large felid gap.