Born in Santurce, Puerto Rico in 1930, Jose moved to New York with his parents at the age of 14. In 1947, he met Mr Rufino Tamayo at the brooklyn museum and stayed in touch with him for several years. He studied graphics and sculpture in a Greenwich Village workshop. He was already exhibiting paintings in 1950 in Chicago. He then exhibited at the Oller-Campeche Gallery of the Commonwealth of Puerto Rico, Galleria II, Galleria Tito, Allen Rich Galleries, Duncan Galleries in Paris, and many other Galleries throughout New York. He had additional exhibits at the Museum in the City of New York, Livingston College, Howard University in Washington, Cornel Medical Center, Mount Sinai Hospital, and El Museo Del Barrio. His works has been shown on television. In 1979 he setup the 1st Bienel art show and invited Mr Rufino Tamayo to attend as a guest of honor. He came and spent some weeks with Mr. Caraballo and his family.  Mr. Tamayo help inspire the works in stencil that Mr Caraballo created.  Jose Caraballo was one of the first artist to depict the life and culture of the Taino Indians of Borinquen. Caraballo also explored other aspects of Puerto Rican culture and artistic horizons, through his Paintings, drawings, graphics, and tapestries. He was awarded "The Palma Julia de Burgos" Cultural award in 1978.

Caraballo died in collegedale, Tennessee in 1992. His work continues to be exhibited throughout the US.