Karaikal is one of the four districts of the Union Territory of Puducherry. The district administration is headed by a District Collector, an officer of the Indian Administrative Service (IAS), who reports to the Lieutenant Governor and the Chief Minister of Puducherry.
Locally, urban administration is managed by the Karaikal Municipality, which oversees public services, sanitation, and urban development. At the legislative level, Karaikal district is divided into several assembly constituencies (including Karaikal North, Karaikal South, Neravy T R Pattinam, Thirunallar, and Nedungadu) which elect representatives to the Puducherry Legislative Assembly. The region also falls under the singular Puducherry parliamentary constituency for representation in the Lok Sabha (India's lower house of parliament).

