Karalee is a rural residential suburb of Ipswich in the City of Ipswich, Queensland, Australia. In the , Karalee had a population of 5,521 people.
The suburb of Karalee is bordered by Brisbane River to the north and north-east and by the Bremer River to the south.
Karalee was first named by the Queensland Place Names Board on 1 September 1973. The name Karalee is an Ugarapul word meaning 'pretty hill beside the water'.
Karalee State School opened on 25 January 1985.
In the , Karalee had a population of 4,352 people.
In the , Karalee had a population of 5,521 people.
Karalee State School is a government primary (Prep-6) school for boys and girls at 77 Arthur Summervilles Road (). In 2017, the school had an enrolment of 566 students with 35 teachers (32 full-time equivalent) and 22 non-teaching staff (13 full-time equivalent). The school includes a special education program. Karalee State School has three houses: Nowra, Kalara and Summerville.
There are no secondary schools in Karalee. The nearest government secondary school is Ipswich State High School in Brassall to the south-east.
There are numerous non-government schools in Ipswich and its suburbs.
Karalee has one shopping village with a Woolworths, a Coles, a newsagent and other stores. Karalee has a scouts base, a rugby league team, a swimming club and a tennis club.
The Ipswich City Council operates a fortnightly mobile library service which visits the shopping centre.