<SUBMISSION>
<ACCESSION-NUMBER>0001181431-03-022266
<TYPE>4
<PUBLIC-DOCUMENT-COUNT>2
<PERIOD>20030814
<FILING-DATE>20030908
<REPORTING-OWNER>
<OWNER-DATA>
<CONFORMED-NAME>FOSTER JOHN RANDALL
<CIK>0001239017
</OWNER-DATA>
<FILING-VALUES>
<FORM-TYPE>4
<ACT>34
<FILE-NUMBER>000-20646
<FILM-NUMBER>03886358
</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>rrd17791.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>0001239017</rptOwnerCik>
            <rptOwnerName>FOSTER JOHN RANDALL</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>1089 REGENCY ROAD, N.W.</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>ATLANTA</rptOwnerCity>
            <rptOwnerState>GA</rptOwnerState>
            <rptOwnerZipCode>30327</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
            <reportingOwnerRelationship>
<isDirector>0</isDirector><isOfficer>1</isOfficer><isTenPercentOwner>0</isTenPercentOwner><isOther>0</isOther><officerTitle>Vice President, Sales and Mkt</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>6000</value></transactionShares><transactionPricePerShare><value>0.00</value><footnoteId id="F8"/></transactionPricePerShare><transactionAcquiredDisposedCode><value>A</value></transactionAcquiredDisposedCode></transactionAmounts><postTransactionAmounts><sharesOwnedFollowingTransaction><value>12430</value></sharesOwnedFollowingTransaction></postTransactionAmounts><ownershipNature><directOrIndirectOwnership><value>D</value></directOrIndirectOwnership></ownershipNature></nonDerivativeTransaction><nonDerivativeHolding><securityTitle><value>Common Stock</value></securityTitle><postTransactionAmounts><sharesOwnedFollowingTransaction><value>13483</value></sharesOwnedFollowingTransaction></postTransactionAmounts><ownershipNature><directOrIndirectOwnership><value>I</value></directOrIndirectOwnership><natureOfOwnership><value>401 (K) Plan</value></natureOfOwnership></ownershipNature></nonDerivativeHolding></nonDerivativeTable><derivativeTable><derivativeHolding><securityTitle><value>Stock 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Stock</value></underlyingSecurityTitle><underlyingSecurityShares><value>1456</value></underlyingSecurityShares></underlyingSecurity><postTransactionAmounts><sharesOwnedFollowingTransaction><value>1456</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>2003-04-20</value></exerciseDate><expirationDate><value>2008-04-20</value></expirationDate><underlyingSecurity><underlyingSecurityTitle><value>Common Stock</value></underlyingSecurityTitle><underlyingSecurityShares><value>1054</value></underlyingSecurityShares></underlyingSecurity><postTransactionAmounts><sharesOwnedFollowingTransaction><value>1054</value></sharesOwnedFollowingTransaction></postTransactionAmounts><ownershipNature><directOrIndirectOwnership><value>D</value></directOrIndirectOwnership></ownershipNature></derivativeHolding><derivativeHolding><securityTitle><value>1999 ISO'S - Traditional</value></securityTitle><conversionOrExercisePrice><value>25.75</value></conversionOrExercisePrice><exerciseDate><value>1988-08-08</value><footnoteId id="F1"/></exerciseDate><expirationDate><value>2009-02-04</value></expirationDate><underlyingSecurity><underlyingSecurityTitle><value>Common 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Stock</value></underlyingSecurityTitle><underlyingSecurityShares><value>2495</value></underlyingSecurityShares></underlyingSecurity><postTransactionAmounts><sharesOwnedFollowingTransaction><value>2495</value></sharesOwnedFollowingTransaction></postTransactionAmounts><ownershipNature><directOrIndirectOwnership><value>D</value></directOrIndirectOwnership></ownershipNature></derivativeHolding><derivativeHolding><securityTitle><value>1999 NQO'S</value></securityTitle><conversionOrExercisePrice><value>25.75</value></conversionOrExercisePrice><exerciseDate><value>1999-02-04</value></exerciseDate><expirationDate><value>2009-02-04</value></expirationDate><underlyingSecurity><underlyingSecurityTitle><value>Common 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Stock</value></underlyingSecurityTitle><underlyingSecurityShares><value>4873</value></underlyingSecurityShares></underlyingSecurity><postTransactionAmounts><sharesOwnedFollowingTransaction><value>4873</value></sharesOwnedFollowingTransaction></postTransactionAmounts><ownershipNature><directOrIndirectOwnership><value>D</value></directOrIndirectOwnership></ownershipNature></derivativeHolding><derivativeHolding><securityTitle><value>2000 ISO'S</value></securityTitle><conversionOrExercisePrice><value>21.53</value></conversionOrExercisePrice><exerciseDate><value>1988-08-08</value><footnoteId id="F4"/></exerciseDate><expirationDate><value>2010-02-09</value></expirationDate><underlyingSecurity><underlyingSecurityTitle><value>Common 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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>6000</value></transactionShares><transactionPricePerShare><value>0.00</value></transactionPricePerShare><transactionAcquiredDisposedCode><value>A</value></transactionAcquiredDisposedCode></transactionAmounts><exerciseDate><value>1988-08-08</value><footnoteId id="F7"/></exerciseDate><expirationDate><value>2013-08-14</value></expirationDate><underlyingSecurity><underlyingSecurityTitle><value>Common 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options vested; 3,500 options vesting January 9, 2004.</footnote><footnote id="F7">1,500 options vesting each year August 14, 2004 through August 14, 2007.</footnote><footnote id="F8">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>rrd9644_11003.htm
<DESCRIPTION>POWER OF ATTORNEY
<TEXT>
<HTML>
<HEAD>
<TITLE>
rrd9644_11003.html
</TITLE>
</HEAD>
<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 27th day of August, 2002.

                                                                        /s/ John
R. Foster
                        _________________________________________
                        Signature

                                                                        John R.
Foster
                        _________________________________________
                        Print Name

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</TEXT>
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</SUBMISSION>
