The town of Kaolinovo has a population of 1 500 inhabitants and lies at a distance of 48 km northeast of Shumen. Kaolinovo is the municipal administrative centre of 15 settlements. The town is known under the name of Shumnu Bohchalar until 1934. On the territory of the town there are deposits of kaolin clays and flint-stone. The town is described in the Ottoman documents from 1573. The municipality is specialized in the production of grains, tobacco and technical cultures.