Caroona is a small village in Liverpool Plains Shire, New South Wales, Australia. Caroona is located on the Quirindi-Coonabarabran road, about 20 kilometres WNW of Quirindi. There are also road links to Werris Creek and . Caroona is located in the prime Liverpool Plains agricultural region. Caroona formerly had a station on the Binnaway – Werris Creek railway line and has a grain storage and loading facility. Caroona is located near the Mooki River.