diff --git a/doc/api/index.rst b/doc/api/index.rst
index 5824dc328e1..b0fc25798f3 100644
--- a/doc/api/index.rst
+++ b/doc/api/index.rst
@@ -34,6 +34,7 @@ Plotting map elements
     Figure.legend
     Figure.logo
     Figure.magnetic_rose
+    Figure.paragraph
     Figure.scalebar
     Figure.solar
     Figure.text
diff --git a/pygmt/figure.py b/pygmt/figure.py
index 136f0008b9b..1434b0d3779 100644
--- a/pygmt/figure.py
+++ b/pygmt/figure.py
@@ -426,6 +426,7 @@ def _repr_html_(self) -> str:
         logo,
         magnetic_rose,
         meca,
+        paragraph,
         plot,
         plot3d,
         psconvert,
diff --git a/pygmt/src/__init__.py b/pygmt/src/__init__.py
index 3c3fb2c39e3..8ac65a3a301 100644
--- a/pygmt/src/__init__.py
+++ b/pygmt/src/__init__.py
@@ -42,6 +42,7 @@
 from pygmt.src.makecpt import makecpt
 from pygmt.src.meca import meca
 from pygmt.src.nearneighbor import nearneighbor
+from pygmt.src.paragraph import paragraph
 from pygmt.src.plot import plot
 from pygmt.src.plot3d import plot3d
 from pygmt.src.project import project
diff --git a/pygmt/src/paragraph.py b/pygmt/src/paragraph.py
new file mode 100644
index 00000000000..94416b7ac7c
--- /dev/null
+++ b/pygmt/src/paragraph.py
@@ -0,0 +1,152 @@
+"""
+paragraph - Typeset one or multiple paragraphs.
+"""
+
+import io
+from collections.abc import Sequence
+from typing import Literal
+
+from pygmt._typing import AnchorCode
+from pygmt.alias import Alias, AliasSystem
+from pygmt.clib import Session
+from pygmt.exceptions import GMTValueError
+from pygmt.helpers import (
+    _check_encoding,
+    build_arg_list,
+    fmt_docstring,
+    is_nonstr_iter,
+    non_ascii_to_octal,
+)
+
+__doctest_skip__ = ["paragraph"]
+
+
+@fmt_docstring
+def paragraph(  # noqa: PLR0913
+    self,
+    x: float | str,
+    y: float | str,
+    text: str | Sequence[str],
+    parwidth: float | str,
+    linespacing: float | str,
+    font: str | None = None,
+    angle: float | None = None,
+    justify: AnchorCode | None = None,
+    fill: str | None = None,
+    pen: str | None = None,
+    alignment: Literal["left", "center", "right", "justified"] = "left",
+    verbose: Literal["quiet", "error", "warning", "timing", "info", "compat", "debug"]
+    | bool = False,
+    panel: int | Sequence[int] | bool = False,
+    transparency: float | Sequence[float] | bool | None = None,
+):
+    r"""
+    Typeset one or multiple paragraphs.
+
+    This method typesets one or multiple paragraphs of text at a given position on the
+    figure. The text is flowed within a given paragraph width and with a specified line
+    spacing. The text can be aligned left, center, right, or justified.
+
+    Multiple paragraphs can be provided as a sequence of strings, where each string
+    represents a separate paragraph, or as a single string with a blank line (``\n\n``)
+    separating the paragraphs.
+
+    Full GMT docs at :gmt-docs:`text.html`.
+
+    Parameters
+    ----------
+    x/y
+        The x, y coordinates of the paragraph.
+    text
+        The paragraph text to typeset. If a sequence of strings is provided, each string
+        is treated as a separate paragraph.
+    parwidth
+        The width of the paragraph.
+    linespacing
+        The spacing between lines.
+    font
+        The font of the text.
+    angle
+        The angle of the text.
+    justify
+        Set the alignment of the block of text, relative to the given x, y position.
+        Choose a :doc:`2-character justification code </techref/justification_codes>`.
+    fill
+        Set color for filling the paragraph box [Default is no fill].
+    pen
+        Set the pen used to draw a rectangle around the paragraph [Default is
+        ``"0.25p,black,solid"``].
+    alignment
+        Set the alignment of the text. Valid values are ``"left"``, ``"center"``,
+        ``"right"``, and ``"justified"``.
+    $verbose
+    $panel
+    $transparency
+
+    Examples
+    --------
+    >>> import pygmt
+    >>>
+    >>> fig = pygmt.Figure()
+    >>> fig.basemap(region=[0, 10, 0, 10], projection="X10c/10c", frame=True)
+    >>> fig.paragraph(
+    ...     x=4,
+    ...     y=4,
+    ...     text="This is a long paragraph. " * 10,
+    ...     parwidth="5c",
+    ...     linespacing="12p",
+    ...     font="12p",
+    ... )
+    >>> fig.show()
+    """
+    self._activate_figure()
+
+    _valid_alignments = ("left", "center", "right", "justified")
+    if alignment not in _valid_alignments:
+        raise GMTValueError(
+            alignment,
+            description="value for parameter 'alignment'",
+            choices=_valid_alignments,
+        )
+
+    aliasdict = AliasSystem(
+        F=[
+            Alias(font, name="font", prefix="+f"),
+            Alias(angle, name="angle", prefix="+a"),
+            Alias(justify, name="justify", prefix="+j"),
+        ],
+        G=Alias(fill, name="fill"),
+        W=Alias(pen, name="pen"),
+    ).add_common(
+        V=verbose,
+        c=panel,
+        t=transparency,
+    )
+    aliasdict.merge({"M": True})
+
+    confdict = {}
+    # Prepare the text string that will be passed to an io.StringIO object.
+    # Multiple paragraphs are separated by a blank line "\n\n".
+    _textstr: str = "\n\n".join(text) if is_nonstr_iter(text) else str(text)
+
+    if _textstr == "":
+        raise GMTValueError(
+            text,
+            description="text",
+            reason="'text' must be a non-empty string or sequence of strings.",
+        )
+
+    # Check the encoding of the text string and convert it to octal if necessary.
+    if (encoding := _check_encoding(_textstr)) != "ascii":
+        _textstr = non_ascii_to_octal(_textstr, encoding=encoding)
+        confdict["PS_CHAR_ENCODING"] = encoding
+
+    with Session() as lib:
+        with io.StringIO() as buffer:  # Prepare the StringIO input.
+            buffer.write(f"> {x} {y} {linespacing} {parwidth} {alignment[0]}\n")
+            buffer.write(_textstr)
+            with lib.virtualfile_in(data=buffer) as vfile:
+                lib.call_module(
+                    "text",
+                    args=build_arg_list(aliasdict, infile=vfile, confdict=confdict),
+                )
diff --git a/pygmt/src/text.py b/pygmt/src/text.py
index 9adb6e2911f..d9863d88d8d 100644
--- a/pygmt/src/text.py
+++ b/pygmt/src/text.py
@@ -69,6 +69,9 @@ def text_(  # noqa: PLR0912, PLR0913
     ZapfDingbats and ISO-8859-x (x can be 1-11, 13-16) encodings. Refer to
     :doc:`/techref/encodings` for the full list of supported non-ASCII characters.
 
+    For typesetting one or more paragraphs of text, see
+    :meth:`pygmt.Figure.paragraph`.
+
     Full GMT docs at :gmt-docs:`text.html`.
 
     $aliases
diff --git a/pygmt/tests/baseline/test_paragraph.png.dvc b/pygmt/tests/baseline/test_paragraph.png.dvc
new file mode 100644
index 00000000000..82906933e1d
--- /dev/null
+++ b/pygmt/tests/baseline/test_paragraph.png.dvc
@@ -0,0 +1,5 @@
+outs:
+- md5: c5b1df47e811475defb0db79e49cab3d
+  size: 27632
+  hash: md5
+  path: test_paragraph.png
diff --git a/pygmt/tests/baseline/test_paragraph_alignment.png.dvc b/pygmt/tests/baseline/test_paragraph_alignment.png.dvc
new file mode 100644
index 00000000000..4a148fac914
--- /dev/null
+++ b/pygmt/tests/baseline/test_paragraph_alignment.png.dvc
@@ -0,0 +1,5 @@
+outs:
+- md5: a0ef6e989b11a252ec2a7ef497f3c789
+  size: 36274
+  hash: md5
+  path: test_paragraph_alignment.png
diff --git a/pygmt/tests/baseline/test_paragraph_font_angle_justify.png.dvc b/pygmt/tests/baseline/test_paragraph_font_angle_justify.png.dvc
new file mode 100644
index 00000000000..483021faf2d
--- /dev/null
+++ b/pygmt/tests/baseline/test_paragraph_font_angle_justify.png.dvc
@@ -0,0 +1,5 @@
+outs:
+- md5: 6f55167eb6bc626b2bfee89ffe73faad
+  size: 48604
+  hash: md5
+  path: test_paragraph_font_angle_justify.png
diff --git a/pygmt/tests/baseline/test_paragraph_multiple_paragraphs.png.dvc b/pygmt/tests/baseline/test_paragraph_multiple_paragraphs.png.dvc
new file mode 100644
index 00000000000..664e741540b
--- /dev/null
+++ b/pygmt/tests/baseline/test_paragraph_multiple_paragraphs.png.dvc
@@ -0,0 +1,5 @@
+outs:
+- md5: 167d4be24bca4e287b2056ecbfbb629a
+  size: 29076
+  hash: md5
+  path: test_paragraph_multiple_paragraphs.png
diff --git a/pygmt/tests/test_paragraph.py b/pygmt/tests/test_paragraph.py
new file mode 100644
index 00000000000..ed25f0d2e58
--- /dev/null
+++ b/pygmt/tests/test_paragraph.py
@@ -0,0 +1,97 @@
+"""
+Tests for Figure.paragraph.
+"""
+
+import pytest
+from pygmt import Figure
+
+
+@pytest.mark.mpl_image_compare
+def test_paragraph():
+    """
+    Test typesetting a single paragraph.
+    """
+    fig = Figure()
+    fig.basemap(region=[0, 10, 0, 10], projection="X10c/10c", frame=True)
+    fig.paragraph(
+        x=4,
+        y=4,
+        text="This is a long paragraph. " * 10,
+        parwidth="5c",
+        linespacing="12p",
+    )
+    return fig
+
+
+@pytest.mark.mpl_image_compare(filename="test_paragraph_multiple_paragraphs.png")
+@pytest.mark.parametrize("inputtype", ["list", "string"])
+def test_paragraph_multiple_paragraphs(inputtype):
+    """
+    Test typesetting multiple paragraphs.
+    """
+    if inputtype == "list":
+        text = [
+            "This is the first paragraph. " * 5,
+            "This is the second paragraph. " * 5,
+        ]
+    else:
+        text = (
+            "This is the first paragraph. " * 5
+            + "\n\n"  # Separate the paragraphs with a blank line.
+            + "This is the second paragraph. " * 5
+        )
+
+    fig = Figure()
+    fig.basemap(region=[0, 10, 0, 10], projection="X10c/10c", frame=True)
+    fig.paragraph(
+        x=4,
+        y=4,
+        text=text,
+        parwidth="5c",
+        linespacing="12p",
+    )
+    return fig
+
+
+@pytest.mark.mpl_image_compare
+def test_paragraph_alignment():
+    """
+    Test typesetting a single paragraph with different alignments.
+    """
+    fig = Figure()
+    fig.basemap(region=[0, 10, 0, 8], projection="X10c/8c", frame=True)
+    for x, y, alignment in [
+        (5, 1, "left"),
+        (5, 3, "right"),
+        (5, 5, "center"),
+        (5, 7, "justified"),
+    ]:
+        fig.paragraph(
+            x=x,
+            y=y,
+            text=alignment.upper() + " : " + "This is a long paragraph. " * 5,
+            parwidth="8c",
+            linespacing="12p",
+            alignment=alignment,
+        )
+    return fig
+
+
+@pytest.mark.mpl_image_compare
+def test_paragraph_font_angle_justify():
+    """
+    Test typesetting a single paragraph with font, angle, and justify options.
+    """
+    fig = Figure()
+    fig.basemap(region=[0, 10, 0, 10], projection="X10c/10c", frame=True)
+    fig.paragraph(
+        x=1,
+        y=4,
+        text="This is a long paragraph. " * 10,
+        parwidth="8c",
+        linespacing="12p",
+        font="10p,Helvetica-Bold,red",
+        angle=45,
+        justify="TL",
+    )
+    return fig