Best things to do in Chiloé: experience the magic of Chiloé Island with this travel guide.

Land of mystery and superstition, Chiloé, also known as Greater Island of Chiloé, is the largest island of the Chiloé Archipelago and sits off the west coast of Chile in the Pacific Ocean.

The island is one of surprising cultural and natural wealth with colorful stilt houses called palafitos, handicraft markets and UNESCO-listed wooden churches.

Consistently covered in a cool grey mist, Chiloé feels strangely unique, mythical even.

It’s a place filled with rich folklore, mythology and a quiet, steady magic featuring a vibrant cast of mythical creatures and supernatural beings.

But landing in Chiloé was no small feat.

Taking advantage of Chile and its uniquely diverse geography took much more effort and preparation than a typical holiday, including eight flights, countless bus and taxi rides and even a ferry.

That’s how we landed in Castro on Chiloé Island.

But first, we spent nearly two weeks adventuring through Chile’s most exciting destinations. The capital city of Santiago was our first stop. There, we relished in Chilean wine, world class cuisine (try Boragó) and its undeniable art scene.

Next, we were on to San Pedro de Atacama, the driest place on Earth. While in Atacama, we booked day trips to Laguna Chaxa, Piedras Rojas and Altiplanic Lagoons for its pink flamingos, red rocks and blue lagoons, the Andes Mountains to experience El Tatio Geysers, northern Atacama to moonwalk at Valle de la Luna and Atacama’s desert to stargaze into the majestic night sky.

Moving south, we flew to the tip of Chile's southernmost Patagonia region and gateway to Antarctica, Punta Arenas, and traveled by bus to Torres del Paine, Chile’s Patagonia, with an exciting opportunity to witness bone chilling waterfalls, icebergs and glaciers.

Finally, we landed in Castro on Chiloé Island, land of myth and sea.

Best Things to Do on Chiloé Island

Get to Chiloé Island From Puerto Montt

Our final Chilean destination was the charming island of Chiloé, located in southern Chile in Los Lagos Region. Though definitely a trek to reach the island, I loved every minute of our time there. From Torres del Paine, we rode several hours by bus to catch a flight from the southernmost town of Punta Arenas to Puerto Montt. Arriving late in the evening, we stayed overnight to get an early start the next day. From Puerto Montt, we caught another bus to Chiloé Island.

On our way out of Puerto Montt, we stopped for breakfast in town near the bus station at Panichini Cafe Boutique. A chai latte with espresso and Desayuno Ejecutivo with a yogurt parfait, bacon, eggs and toast did the trick.

The bus station, Terminal Buses Pto. Montt, was only a 15 minute walk along the harbor but instead we grabbed an Uber to conserve energy. Inside the terminal, up at the window, we purchased tickets for a 10:45 a.m. bus to Chiloé and made our way on board. The double decker bus was very spacious and comfortable, helping with the three hour ride ahead of us.

Near the end of the ride, something was afoot. The bus had reached Pargua, a village in the commune of Calbuco located on the northeast side of the Chacao Channel. The town sits near Route 5 and connects the village of Chacao to the northern end of Chiloé Island by ferry.

Excited to see what the commotion was about and once our bus settled into its tiny little spot, we hopped off to investigate.

With barely enough room to squeeze between the massive vehicles that had boarded the ferry, we made our way to the top deck to enjoy the views. Though gloomy and grey, it was still great to get some fresh air; we couldn’t wait to land on the island.

Eat at Restaurante Al estilo Chef Merce

Soon enough, we arrived in town at the bus station. On the way out, we picked up some sugar coated peanuts, along with an Uber straight to lunch at Restaurante Al estilo Chef Marce, a Peruvian restaurant focusing on freshness, quality and flavor.

Welcomed to a covered patio filled with dappled light and plant life, the atmosphere was pleasant and welcoming. Exhausted from our travels and an overwhelming menu, we asked for a few of the local favorites.

To begin, we were served a bread basket and side dishes filled with dipping sauces and toasted corn nuts, a life saver. A Peruvian staple, we both chose the chicha morada to drink. Literally meaning purple Chicha (beverage most commonly fermented from corn), chicha morada is a sweet beverage originating in the Andean regions of Perú made with purple corn, pineapple peels, quince, cinnamon and cloves.

For our mains, fried rice with mixed protein including steak, chicken and shrimp and camarones al pilpil, shrimp in white wine sauce with butter and potatoes. Each of the dishes were delicious - fresh and full of flavor - but also comforting, like something homemade.

The staff was very sweet and even offered us a special shot as an aperitif; it was delicious.

Lunch in town also gave us a peak into downtown Castro, with its cool, grungy atmosphere and vibrant street art.

From there, we picked up another Uber to our stay in Rilan, Hotel & Cava Estancia Rilan, a 45 minute drive southeast up and around Estero de Castro, the body of water that provides access to the smaller islands of the Chiloé Archipelago.

Explore Downtown Castro

The following day, we planned to explore Castro with Lili, the young girl at our hotel who was taking care of the dogs. For $100 USD, she’d take us around the island and introduce us to some of her favorite spots.

Around 10:30 a.m., Lili met us at the hotel and we traveled the 40 minutes into town from Rilan. Our first stop was the Investigations Police of Chile (PDI) because we were having issues in Torres del Paine with our hotel requesting our immigration documents to avoid a 19% tax but we were never given such a document upon entering the country.

Tip / Make sure to keep your Chilean Tourist Card in a safe spot. You’ll receive this document upon arrival through any Chilean border control point. The card serves as proof that you’re in the country legally and it also allows an exemption for the 19% VAT on hotel accommodation. To qualify for this exemption, you must present a valid passport and your Tourist Card upon check in.

The officer we spoke with at the agency told us this document was not necessary and we should have no problem getting out of the country (but it was still required to avoid the 19% tax on our hotel room). Still, we submitted a request for the document online.

In town, Plaza de Armas serves as the heart of Castro and refers to the main square of the city. The plaza is home to a central fountain and benches, a well-kept park, surrounding shops, banks, bars and restaurants, local vendors selling handcrafted items and bites and the Church of San Francisco.

The Church of San Francisco is the main Catholic church of Chiloé’s capital. Built in 1912, the yellow, early-20th-century church has two steeples and a distinctive wooden interior. The dome above the church’s presbytery stands over 100 feet high with its towers reaching nearly 138 feet. Also known as the Iglesia Apóstol Santiago (St. James Church) and erroneously as the “cathedral,” which is actually found in Ancud, this church is the headquarters of the diocese of the same name. The building was declared a Chilean National Monument in 1979 and a UNESCO World Heritage Site in the year 2000 for its unique wooden architecture and blend of European and indigenous culture.

Leaving central plaza, we moved south toward the waterline to check out some shops selling local handmade items in Barrio Patrimonial de Castro, or Castro Heritage Neighborhood. Referring to the historic center and traditional areas within the city of Castro, this zone showcases a rich cultural heritage and resilience of the local community, integrating architectural styles and traditions. Plus, it’s where you’ll find a plethora of interesting souvenirs at modest prices.

Many of the shops were filled with pieces made from natural materials like wool, leather, wood or grass and some gave nods to the myths and legends surrounding the islands superstitions. Woven baskets, carved bowls and chilly weather gear were the norm.

At the waters edge, Costanera Castro, or Castro’s coast, a huge welcome sign grabs attention and looks out over the water.

This neighborhood is a good reminder that the ocean lies nearby and fishing is a significant part of life and economy in Castro, if not all of Chiloé. The town is well known for colorful fishing boats and fish markets (like Feria Yumbel) where you can find all kinds of fresh seafood. Located on Estero de Castro on the eastern coast of central Chiloé Island, this position provides Castro with perfect access to the eastern islands of Chiloé Archipelago, as well as to the open ocean through Cucao and Huillinco to the west.

Continuing to wander, we moved up and down the steep streets that led from the city center to the waters edge and back again. My favorite stops were in tiny boutiques selling all kinds of unique handmade pieces like jewelry, clothing, home goods, honey, jam, dishes, wooden objects and all kinds of textiles, especially wool.

Carved wooden mythological sculptures lined the streets and captured our attention. Haunting the island through folklore and superstition, each mythical being has a distinct look and meaning.

The Camahueto is a mythical creature described as a bull or calf with a single horn on its forehead, similar to a unicorn. This creature is known for its destructive nature when it grows and travels from rivers to the sea, causing landslides and destruction along the way. However, its horn is also considered a valuable and potent medicine.

The Caballo Marino Chilote (Chilote sea horse) is an aquatic creature that bears some resemblance to the sea horse. Legend has it, the being is an invisible creature, only seen by those with magical powers. The creature appears to be a horse but has a longer snout, golden mane, four paws in the form of fins and a long tail, similar to the tail of a fish. The creatures range in size from dwarfs to giants. Interestingly, the Brujo Chilote (a sorcerer or warlock) uses a "Caballo Marino Chilote" as transportation to get to Caleuche, a legendary ghost ship.

At Barra Cervecera, we stepped inside for a few drinks and were charmed by its damp, moody atmosphere.

Dark wood panels lined the walls, along with dozens of chalkboards outlining the daily specials.

Not quite ready for booze, I chose a bottled green apple juice that was incredibly bright and fresh.

The bar also offered a charming view of the candy colored buildings dotting the street, leading to the waters edge.

Vibrant street art continued to follow us as we moved through town. Murals and graffiti can be seen throughout the city, only adding to its colorful and artistic charm. The island's cultural heritage is often reflected in the artwork, with some works drawing inspiration from traditional Chilote motifs or the natural environment.

Up next, the famed palafitos.

Discover the Famed Palafitos

Along the streets of Pedro Montt and Ernesto Riqelme are an iconic collection of colorful wooden houses built on stilts. Floating above the water, these palafitos capture attention with their unique design and surrounding waterfront.

These homes represent a specific architectural style adapted to the island’s coastal environment and maritime culture and are common in Chilotan architecture.

These distinctive stilt houses were originally built to allow fishermen life near the water, where they could dock their boats directly at home. Historically, residents would have been able to navigate in and out of the canals from their porches with the tide.

Brought on by a period of growth, mainly in the fishing industry, construction of the palafitos in Castro became popular during the 19th century.

Built on thick poles called piles and using native woods like luma and cypress, the palafito roofs often feature larch shingles, a tough softwood that’s naturally resistant to decay and weathering.

Each palafito typically has two facades: one facing the street, connected by a bridge, and another facing the canal or waterway, often with a terrace or patio used for fishing-related activities. Today, many palafitos are still inhabited by local islanders but some have been converted into charming boutique hotels, cafes or restaurants, catering to the growing tourism in the area.

Cute as can be, the homes reminded me of colorful Chiclets, smashed side by side or on top of each other. I was bummed, however, that the tide was out during our visit and what we saw leading up to the homes was mostly brown and muddy.

Shop Dalcahue’s Markets

Dalcahue, a small town on the island, is renowned for its vibrant artisan and food markets attracting visitors looking for unique handicrafts, local flavors and a glimpse into the region's cultural heritage. In my opinion, more interesting than the shops in Castro, those in Dalcahue offered a bit more variety, higher concentration and more upscale pieces.

Near the waterfront municipal building on Pedro Montt, Feria Artesanal de Dalcahue (Artisan Fair) operates Tuesday to Sunday and is particularly busy on Sunday mornings when artisans arrive from across Chiloé to sell their goods. This market is home to traditional Chilote handicrafts like woolen sweaters, hats, socks and blankets hand dyed with natural pigments, woven baskets and mythical figures crafted from straw, wooden pieces and polished dishes.

Though fairly quiet during our visit, the atmosphere is often lively and engaging, with live music filling the air. Vendors are typically artisans selling their own handmade goods at reasonable prices; bargaining expected.

Other options include Feria Artesanal Manos Chilotas and Mercado Dalcahue. Feria Artesanal Manos Chilotas sits further along Pedro Montt, in a smaller building with open booths and focuses on smaller batch, handcrafted items made by local artisans. Mercado Dalcahue is a market known for fresh, local food, particularly seafood and traditional dishes like curanto, chapaleles and milcao, along with empanadas and other regional specialties. It’s the perfect place to experience the local culinary scene and enjoy fresh, authentic flavors.

Potatoes in Chiloé! I’d be remiss if I didn’t mention potatoes. The Chiloé Archipelago is a significant center of potato diversity and is considered the origin of most cultivated potatoes outside the Andes, in particular, the subspecies solanum tuberosum tuberosum. With over 400 native potato varieties identified, some of which have been cultivated since before the Spanish conquest, potatoes are not just a staple food but are deeply embedded in Chilote culture, folklore and traditional medicine - and you’ll find them everywhere you go.

Some fascinating facts about the potatoes of Chiloé:

Chiloé is recognized as the geographical nucleus where the most different types of potatoes are found, second only to the Titicaca region in Peru and Bolivia.
The potatoes of Chiloé are specifically adapted to the long summer days of the higher latitude region of southern Chile, unlike those from Peru and Bolivia.
Potatoes are fundamental to Chilote identity and culture, with a strong connection to traditional practices and folklore.
Chilote potatoes are used in a wide variety of dishes, including milcao (a potato pancake), and are also incorporated into stews, porridge and even desserts.
Chiloé's unique potato varieties are attracting food enthusiasts from around Chile and beyond, who come to sample them with local seafood like oysters and king crab.
The resilience of Chilote potatoes, particularly their ability to thrive in extreme climates with less water, makes them a potential key to sustainable food production in the face of climate change.

Besides the “crafty” outdoor markets, there are also several stand alone shops in the area, as well, and some of these were my favorite - with a bit more upscale pieces like El Chilcón Cooperative.

If you need a spot to warm up, stop in Artesanales de Chiloé. The cafe offers a cozy vibe, selling small goods like mugs, slippers and socks, alongside ice cream and the best hot cocoa in town.

Overall, Dalcuhue offers visitors a chance to grab some authentic, handmade Chilote crafts and support local artisans. It’s also one of the best areas to sample fresh seafood and regional delicacies, and experience the vibrant local culture and interact with the community.

From Dalcuhue, we moved to Tenaún, a small village 35 minutes northeast.

Lunch at Hospedaje Mirella Restaurant in Tenaún

Tenaún is a picturesque coastal town founded in 1567, known for its historic wooden church, the Church of Tenaún. The town’s name means “three hills” in the Mapuche Huilliche language and reflects its geographical setting and the three pillars of the church. Tenaún is also recognized for its cultural significance, preserving Chilote traditions and serving as a focus for their preservation.

Our guide, Lili, led us to one of her favorite restaurants in town for lunch, Hospedaje Mirella Restaurant. Though closed for the day, she called ahead and the owner agreed to cook for us.

The space was rustic and charming, overflowing with unique objects and wooden tables with white linens covered in flowers. With a fresh catch from that morning, the owner verbally delivered the menu; we could choose from fish or red meat.

Without hesitation, I selected fish, a white variety called Pacific sierra, with a fresh calafate juice, while my partner chose meat. Pacific sierra, also known as sierra mackerel or Mexican sierra, is a ray-finned bony fish in the family Scombridae, better known as the mackerel family. It was delicate with a firm flaky texture.

And of course, our mains were paired with seasoned fingerling potatoes and a side salad.

And of course, Tenaún is known for its church. The town honors the historic Iglesia de Nuestra Señora de los Dolores (Church of Our Lady of Sorrows), a UNESCO World Heritage Site and architectural marvel built without using a single nail. Referred to as the Church of Tenaún, this Catholic church is a perfect example of Chilote wooden architecture and is recognized for its unique design and historical value.

The Church of Tenaún is one of 16 churches of Chiloé that were declared UNESCO World Heritage Sites in 2000, so make sure to keep your eyes peeled for others on the list.

Cross a Floating Bridge to Isla de las Almas Navegantes

The last stop of the day was a tiny island reached by carefully crossing a sinking bridge. Aucar Island sits at the end of a 1,675 foot footbridge or can be reached by waiting until the tide is low, when the island becomes part of Isla Grande. The oval shaped island is a mere 1,000 feet long and 360 feet wide, and located opposite the town with the same name.

The region is an important one, home to wetlands with several bird species, including the black necked swan. The island also provides safety to important native flora and fauna and has a botanical garden originating in the 1990s.

A chapel dating from 1761, a cemetery with beautiful gardens and a viewpoint from which you can appreciate the landscape and flocks of black necked swans are also found on the island.

The first bridge to Isla Grande was built of stone and mud in the 1940s, while the next - a wooden walkway made of luma, coigüel and tepa - was built in 1974. In 2012, it was rebuilt due to its poor condition and was then handed over to the community the following year. Like the footbridge, the chapel has been rebuilt several times throughout its history; the current building was inaugurated in 2018.

Our time on the island was soggy and a bit eerie. We slowly walked across the long wooden bridge with its slick wooden planks and shallow water beneath. The island had huge, tall trees that opened up with a pathway between. As we walked deeper through the trees, eventually the cemetery emerged, along with a small church.

On the return, it felt as if the water level had lowered, making it slightly less daunting to cross the footbridge but the sogginess continued.

Coined the "Island of Navigating Souls," we found both Aucar and Tenaún to be a lovely spots to experience the rich history, traditions and natural beauty of Chiloé. Even the rain made the whole experience more charming.

In the morning we’d fly to Santiago for one last evening and then on to our home in Los Angeles. Chile will forever hold a special space in my heart as a country filled with warm people, delicious food and wine and stunning, diverse landscapes only found in dreams.

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