<SUBMISSION>
<ACCESSION-NUMBER>0001181431-03-022268
<TYPE>4
<PUBLIC-DOCUMENT-COUNT>2
<PERIOD>20030814
<FILING-DATE>20030908
<REPORTING-OWNER>
<OWNER-DATA>
<CONFORMED-NAME>BROWN THOMAS VERNE
<CIK>0001239014
</OWNER-DATA>
<FILING-VALUES>
<FORM-TYPE>4
<ACT>34
<FILE-NUMBER>000-20646
<FILM-NUMBER>03886371
</FILING-VALUES>
<MAIL-ADDRESS>
<STREET1>3100 JOE JERKINS BLVD
<CITY>AUSTELL
<STATE>GA
<ZIP>30106
</MAIL-ADDRESS>
</REPORTING-OWNER>
<ISSUER>
<COMPANY-DATA>
<CONFORMED-NAME>CARAUSTAR INDUSTRIES INC
<CIK>0000825692
<ASSIGNED-SIC>2631
<IRS-NUMBER>581388387
<STATE-OF-INCORPORATION>NC
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<BUSINESS-ADDRESS>
<STREET1>3100 JOE JERKINS BLVD
<CITY>AUSTELL
<STATE>GA
<ZIP>30106
<PHONE>7709483101
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>P O BOX 115
<CITY>AUSTELL
<STATE>GA
<ZIP>30168
</MAIL-ADDRESS>
</ISSUER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>rrd17755.xml
<DESCRIPTION>2003 OPTIONS GRANT UNDER LONG TERM EQUITY INCENTIVE PLAN
<TEXT>
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    <documentType>4</documentType><periodOfReport>2003-08-14</periodOfReport><notSubjectToSection16>0</notSubjectToSection16>
    <issuer>
        <issuerCik>0000825692</issuerCik>
        <issuerName>CARAUSTAR INDUSTRIES INC</issuerName>
        <issuerTradingSymbol>CSAR</issuerTradingSymbol></issuer><reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001239014</rptOwnerCik>
            <rptOwnerName>BROWN THOMAS VERNE</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>1141 VININGS FALLS</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>SMYRNA</rptOwnerCity>
            <rptOwnerState>GA</rptOwnerState>
            <rptOwnerZipCode>30080</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
            <reportingOwnerRelationship>
<isDirector>0</isDirector><isOfficer>1</isOfficer><isTenPercentOwner>0</isTenPercentOwner><isOther>0</isOther><officerTitle>President and CEO</officerTitle></reportingOwnerRelationship></reportingOwner><nonDerivativeTable><nonDerivativeTransaction><securityTitle><value>Common Stock</value></securityTitle><transactionDate><value>2003-09-01</value></transactionDate><transactionCoding><transactionFormType>4</transactionFormType><transactionCode>A</transactionCode><equitySwapInvolved>0</equitySwapInvolved></transactionCoding><transactionAmounts><transactionShares><value>13000</value></transactionShares><transactionPricePerShare><value>0.00</value><footnoteId id="F9"/></transactionPricePerShare><transactionAcquiredDisposedCode><value>A</value></transactionAcquiredDisposedCode></transactionAmounts><postTransactionAmounts><sharesOwnedFollowingTransaction><value>157555</value></sharesOwnedFollowingTransaction></postTransactionAmounts><ownershipNature><directOrIndirectOwnership><value>D</value></directOrIndirectOwnership></ownershipNature></nonDerivativeTransaction><nonDerivativeHolding><securityTitle><value>Common Stock</value></securityTitle><postTransactionAmounts><sharesOwnedFollowingTransaction><value>29200</value></sharesOwnedFollowingTransaction></postTransactionAmounts><ownershipNature><directOrIndirectOwnership><value>I</value></directOrIndirectOwnership><natureOfOwnership><value>By Spouse</value></natureOfOwnership></ownershipNature></nonDerivativeHolding><nonDerivativeHolding><securityTitle><value>Common Stock</value></securityTitle><postTransactionAmounts><sharesOwnedFollowingTransaction><value>6709</value></sharesOwnedFollowingTransaction></postTransactionAmounts><ownershipNature><directOrIndirectOwnership><value>I</value></directOrIndirectOwnership><natureOfOwnership><value>By 401(K)</value></natureOfOwnership></ownershipNature></nonDerivativeHolding></nonDerivativeTable><derivativeTable><derivativeHolding><securityTitle><value>1996 ISO'S</value></securityTitle><conversionOrExercisePrice><value>19.50</value></conversionOrExercisePrice><exerciseDate><value>2002-02-02</value></exerciseDate><expirationDate><value>2004-02-02</value></expirationDate><underlyingSecurity><underlyingSecurityTitle><value>Common Stock</value></underlyingSecurityTitle><underlyingSecurityShares><value>8000</value></underlyingSecurityShares></underlyingSecurity><postTransactionAmounts><sharesOwnedFollowingTransaction><value>8000</value></sharesOwnedFollowingTransaction></postTransactionAmounts><ownershipNature><directOrIndirectOwnership><value>D</value></directOrIndirectOwnership></ownershipNature></derivativeHolding><derivativeHolding><securityTitle><value>1997 ISO'S</value></securityTitle><conversionOrExercisePrice><value>30.125</value></conversionOrExercisePrice><exerciseDate><value>2003-02-05</value></exerciseDate><expirationDate><value>2005-02-05</value></expirationDate><underlyingSecurity><underlyingSecurityTitle><value>Common Stock</value></underlyingSecurityTitle><underlyingSecurityShares><value>8000</value></underlyingSecurityShares></underlyingSecurity><postTransactionAmounts><sharesOwnedFollowingTransaction><value>8000</value></sharesOwnedFollowingTransaction></postTransactionAmounts><ownershipNature><directOrIndirectOwnership><value>D</value></directOrIndirectOwnership></ownershipNature></derivativeHolding><derivativeHolding><securityTitle><value>1998 ISO's - Traditional</value></securityTitle><conversionOrExercisePrice><value>34.00</value></conversionOrExercisePrice><exerciseDate><value>1988-08-08</value><footnoteId id="F1"/></exerciseDate><expirationDate><value>2008-04-20</value></expirationDate><underlyingSecurity><underlyingSecurityTitle><value>Common Stock</value></underlyingSecurityTitle><underlyingSecurityShares><value>3971</value></underlyingSecurityShares></underlyingSecurity><postTransactionAmounts><sharesOwnedFollowingTransaction><value>3971</value></sharesOwnedFollowingTransaction></postTransactionAmounts><ownershipNature><directOrIndirectOwnership><value>D</value></directOrIndirectOwnership></ownershipNature></derivativeHolding><derivativeHolding><securityTitle><value>1998 ISO'S - Performance</value></securityTitle><conversionOrExercisePrice><value>40.80</value></conversionOrExercisePrice><exerciseDate><value>1988-08-08</value><footnoteId id="F2"/></exerciseDate><expirationDate><value>2008-04-20</value></expirationDate><underlyingSecurity><underlyingSecurityTitle><value>Common Stock</value></underlyingSecurityTitle><underlyingSecurityShares><value>2875</value></underlyingSecurityShares></underlyingSecurity><postTransactionAmounts><sharesOwnedFollowingTransaction><value>2875</value></sharesOwnedFollowingTransaction></postTransactionAmounts><ownershipNature><directOrIndirectOwnership><value>D</value></directOrIndirectOwnership></ownershipNature></derivativeHolding><derivativeHolding><securityTitle><value>1999 ISO'S - 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Traditional</value></securityTitle><conversionOrExercisePrice><value>17.94</value></conversionOrExercisePrice><exerciseDate><value>1988-08-08</value><footnoteId id="F5"/></exerciseDate><expirationDate><value>2010-02-09</value></expirationDate><underlyingSecurity><underlyingSecurityTitle><value>Common Stock</value></underlyingSecurityTitle><underlyingSecurityShares><value>6450</value></underlyingSecurityShares></underlyingSecurity><postTransactionAmounts><sharesOwnedFollowingTransaction><value>6450</value></sharesOwnedFollowingTransaction></postTransactionAmounts><ownershipNature><directOrIndirectOwnership><value>D</value></directOrIndirectOwnership></ownershipNature></derivativeHolding><derivativeHolding><securityTitle><value>2000 ISO'S - Performance</value></securityTitle><conversionOrExercisePrice><value>21.53</value></conversionOrExercisePrice><exerciseDate><value>1988-08-08</value><footnoteId id="F6"/></exerciseDate><expirationDate><value>2010-02-09</value></expirationDate><underlyingSecurity><underlyingSecurityTitle><value>Common Stock</value></underlyingSecurityTitle><underlyingSecurityShares><value>6322</value></underlyingSecurityShares></underlyingSecurity><postTransactionAmounts><sharesOwnedFollowingTransaction><value>6322</value></sharesOwnedFollowingTransaction></postTransactionAmounts><ownershipNature><directOrIndirectOwnership><value>D</value></directOrIndirectOwnership></ownershipNature></derivativeHolding><derivativeHolding><securityTitle><value>2002 NQSO'S</value></securityTitle><conversionOrExercisePrice><value>7.05</value></conversionOrExercisePrice><exerciseDate><value>1988-08-08</value><footnoteId id="F7"/></exerciseDate><expirationDate><value>2012-02-09</value></expirationDate><underlyingSecurity><underlyingSecurityTitle><value>Common Stock</value></underlyingSecurityTitle><underlyingSecurityShares><value>7000</value></underlyingSecurityShares></underlyingSecurity><postTransactionAmounts><sharesOwnedFollowingTransaction><value>7000</value></sharesOwnedFollowingTransaction></postTransactionAmounts><ownershipNature><directOrIndirectOwnership><value>D</value></directOrIndirectOwnership></ownershipNature></derivativeHolding><derivativeTransaction><securityTitle><value>2003 NQSO'S</value></securityTitle><conversionOrExercisePrice><value>8.17</value></conversionOrExercisePrice><transactionDate><value>2003-08-14</value></transactionDate><transactionCoding><transactionFormType>5</transactionFormType><transactionCode>A</transactionCode><equitySwapInvolved>0</equitySwapInvolved></transactionCoding><transactionAmounts><transactionShares><value>13000</value></transactionShares><transactionPricePerShare><value>0.00</value></transactionPricePerShare><transactionAcquiredDisposedCode><value>A</value></transactionAcquiredDisposedCode></transactionAmounts><exerciseDate><value>1988-08-08</value><footnoteId id="F8"/></exerciseDate><expirationDate><value>2013-08-14</value></expirationDate><underlyingSecurity><underlyingSecurityTitle><value>Common Stock</value></underlyingSecurityTitle><underlyingSecurityShares><value>13000</value></underlyingSecurityShares></underlyingSecurity><postTransactionAmounts><sharesOwnedFollowingTransaction><value>13000</value></sharesOwnedFollowingTransaction></postTransactionAmounts><ownershipNature><directOrIndirectOwnership><value>D</value></directOrIndirectOwnership></ownershipNature></derivativeTransaction></derivativeTable><footnotes><footnote id="F1">2,703 options vested; 1,268 options vesting April 20, 2004.</footnote><footnote id="F2">1,394 options vesting April 20, 2004; 1,481 options vesting April 20, 2005.</footnote><footnote id="F3">9,028 options vested; 2,258 options vesting February 4, 2004.</footnote><footnote id="F4">5,416 options vested; 1,355 options vesting February 4, 2004.</footnote><footnote id="F5">3,870 options vested; 1,290 options vesting each year February 9, 2004 through February 9, 2005.</footnote><footnote id="F6">3,792 options vested; 1,264 options vesting February 9, 2004; 1,266 options vesting February 9, 2005.</footnote><footnote id="F7">3,500 options vesed;3,500 options vesting January 9, 2004.</footnote><footnote id="F8">3,250 options vesting each year August 14, 2004 through August 14, 2007.</footnote><footnote id="F9">Restricted shares issued pursuant to the Long Term Equity Incentive Plan.</footnote></footnotes><ownerSignature><signatureName>/s/ Lee Gentry as attorney in fact</signatureName><signatureDate>2003-09-08</signatureDate></ownerSignature></ownershipDocument>



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<DOCUMENT>
<TYPE>EX-24.
<SEQUENCE>3
<FILENAME>rrd9608_11006.htm
<DESCRIPTION>POWER OF ATTORNEY
<TEXT>
<HTML>
<HEAD>
<TITLE>
rrd9608_11006.html
</TITLE>
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<BODY>
POWER OF ATTORNEYPOWER OF ATTORNEY


            Know all by these presents, that the undersigned hereby constitutes
and appoints each of William A. Nix, III, H. Lee Thrash, III and Benjamin Lee
Gentry, signing singly, the undersigned's true and lawful attorney-in-fact to:

            (1)        execute for and on behalf of the undersigned, in the
undersigned's capacity as an officer and/or director of Caraustar Industries,
Inc. (the "Company"), Forms 3, 4 and 5 in accordance with Section 16(a) of the
Securities Exchange Act of 1934 and the rules thereunder; and

            (2)        do and perform any all acts for and on behalf of the
undersigned that may be necessary or desirable to complete and execute any such
Form 3, 4, or 5, complete and execute any amendment or amendments thereto, and
timely file such form with the United States Securities and Exchange Commission
and any stock exchange or similar authority; and

            (3)        take any other action of any type whatsoever in
connection with the foregoing which, in the opinion of such attorney-in-fact,
may be of benefit to, in the best interest of, or legally required by, the
undersigned, it being understood that the documents executed by such
attorney-in-fact on behalf of the undersigned pursuant to this Power of Attorney
shall be in such form and shall contain such terms and conditions as such
attorney-in-fact may approve in such attorney-in-fact's discretion.

            The undersigned hereby grants to each such attorney-in-fact full
power and authority to do and perform any and every act and thing whatsoever
requisite, necessary, or proper to be done in the exercise of any of the rights
and powers herein granted, as fully to all intents and purposes as the
undersigned might or could do if personally present, with full power of
substitution or revocation, hereby ratifying and confirming all that such
attorney-in-fact, or such attorney-in-fact's substitute or substitutes, shall
lawfully do or cause to be done by virtue of this power of attorney and the
rights and powers herein granted.  The undersigned acknowledges that the
foregoing attorneys-in-fact, in serving in such capacity at the request of the
undersigned, are not assuming, nor is the Company assuming, any of the
undersigned's responsibilities to comply with Section 16 of the Securities
Exchange Act of 1934.

            This Power of Attorney shall remain in full force and effect until
the undersigned is no longer required to file Forms 3, 4 and 5 with respect to
the undersigned's holdings of and transactions in securities issued by the
Company, unless earlier revoked by the undersigned in a signed writing delivered
to the foregoing attorneys-in-fact.



            IN WITNESS WHEREOF, the undersigned has caused this Power of
Attorney to be executed as of this 26th day of August, 2002.

                                                                        /s/
Thomas V. Brown

_________________________________________

Signature

                                                                        Thomas
V. Brown

_________________________________________
                                                                        Print
Name

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</TEXT>
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</SUBMISSION>
