Karagiozis is a poor hunchbacked Greek, his right hand is always depicted long, his clothes are ragged and patched, and his feet are always bare. He lives in a poor cottage (Greek: παράγκα) with his wife Aglaia and his three sons, during the times of the Ottoman Empire. The scene is occupied by his cottage in the left, and the Sultan's Palace (Sarayi) on the far right.

Because of his poverty, Karagiozis uses mischievous and crude ways to find money and feed his family.

Students of folklore divide Karagiozis' tales in two major categories: the 'Heroics' and the 'Comedies'. The Heroics are tales based on tradition or real stories involving the times under Ottoman rule, and Karagiozis is presented as a helper and assistant of an important hero.

Puppeteers devise their own original tales, however there are many 'traditional' tales that have descended orally from earlier puppeteers and are accepted as 'canon' with slight alterations between the players. Most of them are formulaic and have the following layout (but with a wide improvisional variety), and often involving interaction with the audience.