He casually walked home [Photo: Courtesy]

A young man astounded his grieving family when he walked into the wake they were holding in his memory.

The remarkable incident took place in Paraguay, in the village of Santa Teresa in the eastern department of Amambay.

Juan Ramon Alfonso Penayo, 20, returned home after he had been missing for several days and his family and friends suspected foul play.

Police had earlier discovered the gruesome remains of a burned body that could not be identified and family members believed it was Penayo.

As drug gangs operate in the area, they feared that he had become involved in trouble and killed.

Organised crime specialist Candido Figueredo told local media Penayo left his home on Thursday last week and had not come back.

The man came home during the wake [Photo: Courtesy]

When police found the unidentifiable burned body, it was concluded it was Penayo and his family organised the funeral and buried the remains.

However, they were stunned to see him casually walk into the house in the middle of the wake they were holding for him.

Areas of northern Paraguay's Amambay Department, which borders the Midwestern state of Mato Grosso do Sul in Brazil, are hotly contested between rival drug organisations, according to official sources.

Reports suggest that there is little border control in the region, making it attractive territory for traffickers.