The Collaborative International Dictionary of English v.0.48:

Karakul \Ka`ra*kul"\, prop. n. [Russ. karakul' curly fleece of
   Bokhara and Khiva sheep.]
   1. A type of Astrakhan, esp. in fine grades, obtained from
      the Karakul sheep. See sense 2 and cf. Caracul.
      [Webster 1913 Suppl.]

   2. A hardy coarse-haired sheep of central Asia, bearing a
      soft curly fleece that is black in the young lambs, but
      which grows brown or gray when adult; the lambs are valued
      for their soft curly black fur. [WordNet sense 1]

   Syn: broadtail, caracul.
        [WordNet 1.5]

   3. A large lake in the Pamirs of Central Asia, lying 13,200
      feet above sea level.
      [PJC]

WordNet (r) 3.0 (2006):

karakul
    n 1: hardy coarse-haired sheep of central Asia; lambs are valued
         for their soft curly black fur [syn: broadtail,
         caracul, karakul]