How to Tour Chiloe Island: See Penguins or Palafitos

Chiloe is a rugged windswept Chilean Island defined by ancient myths and traditions. South America’s second-largest island boasts old fishing villages intermixed with incredible nature. Sixteen of its over 100 island churches have been declared UNESCO World Heritage sites that draw visitors from around the world. However, it was the penguins and palafitos (stilt houses) that inspired us to tour Chiloe Island.

It’s not a huge island. However, the highlights are a good distance from each other. Generally, if you are trying to tour Chiloe as a day trip, you need to pick between penguins at Puñihuil or stilted houses in Castro.

Trying to do it all had us in transit for over eight hours of a long fifteen-hour day. Was it worth it? Read on, and you decide.

This site contains affiliate links to products and/or services. We may receive a commission for purchases made through these links at no additional cost to you.

See more of Chile on Albom Adventures

Things to do in Chiloe

Take a boat to see the Chiloe penguins

The three tiny volcanic islands just off the west coast of Puñihuil are the only known shared breeding place in the world for Humbolt and Magellan penguins. And, getting there is half the fun, the process comparable to our penguin visit in Isla Damas.

After purchasing boat tickets, we were fitted with lifejackets and given ponchos. Anchored near the shore, the boats wait as we are pulled to them upon a metal cart that holds up to 10 people. There is no best spot to sit, as the captain turns the boat for penguin viewing. TIP: Step off quickly just before a wave crashes over the base of the cart or, like me, you will have wet shoes, socks, and pant legs. 

Despite the choppy water and pelting rain, the boat was surprisingly smooth. Waddling uphill, jumping down, or diving into the sea, they are adorable birds.

Tour Chiloe churches

The colourful small wooden churches that dot the island were often built by fisherman and shipbuilders and served as navigational aids for them. They represent the fusion of European Christian architecture and Chilean coastal traditions. Interestingly, like their boats, the churches are built without nails utilizing various kinds of wooden joints. Built on high ground, the majority of churches have south-facing entrances to keep the rain out. Sixteen churches on Chiloe Island have been declared World heritage sites.

View the Chiloe Palafitos (stilted houses) in Castro

Called palafitos, these waterside houses are built on Cyprus pillars in the Gamboa neighbourhood. They were originally built during the logging boom in the late 1800s. Most are homes, although there are now hotels and restaurants that are in palafitos.

Shop handcrafts at the artisanal markets

There are several artisan markets on the island, the most famous being the Sunday Handicraft Fair in Dalcahue. We visited several markets and consistently discovered incredibly talented weavers and knitters. From sweaters and ponchos to socks and hats, the locals really know what they are doing.

Keep an eye out for nature and wildlife

Reminding us a bit of home (New Zealand), Chiloe has a densely populated coastal birdlife, especially near the fishing ports and mussel farms. Aside from the penguins at Puñihuil, we saw black vultures, cormorants, steamer ducks, hawks, and swans. In fact, the name Chiloe means “land of seagulls” in the Mapuche language.

Inland, the island is home to pudú, the world’s smallest deer, standing at only 33 cm. Sarah was lucky enough to see one as we drove past on a part of the road that didn’t allow for stopping.

What to see at key stops as you tour Chiloe Island

Chacao

We entered from the ferry in Chacao, one of the oldest villages on the island, established in 1567. Most tours stop here, and key sites include:

• Chacao’s church.
• The main square, where we spotted a Monkey Puzzle Tree.
• Colourful homes.

Ancud

Puñihuil

Castro

Dalcahue

Small towns of San Juan, Tenaun, Colo, and Isla Aucar

Rather than taking the direct route of highway 5 straight back, we drove through several small towns on the way to Aucar where we walked across the bridge to Isla Aucar (The Island of Sailors). The small island is believed to be the resting place for the souls of those lost at sea.

How to tour Chiloe Island

Chiloe Island is often a day trip beginning with a 30-minute drive from Puerto Varas or a 50-minute drive from Puerto Montt to Pargua. From here, the Chiloe ferry brings cars and passengers to the island. The three ways to tour Chiloe are on a group tour, with a private guide, or on your own. Here are the key advantages and disadvantages of each:

Group tour

Group tours are perfect for those who don’t want to drive and want the added knowledge that comes from having a guide. The downside is the more rigid schedule, and the occasional need to wait for other tour members.

Initially, we searched for tours to the penguins and the palafitos but found none. It is too long of a day. Here are our top recommendations for each site:

Private guide

The three main advantages of a private guide are flexibility, a focus on what you care about most, and a timeline that fits your needs. The downside is the cost.

We hired Marcelo Uribe, a certified professional private guide that allowed us to design our basic programme, which was to include both the penguins and palafitos. His proposed schedule added even more. While we paid for this luxury and very long day, for us, it was worth every penny.

Marcelo is a local native with an eye to spot fascinating detail, birdlife, and other nature that we never would have seen on our own. Best of all, he knows and shares the fascinating legends and myths that make Chiloe such a special place to visit. He is an easy person to be with, and we highly recommend him as a guide.

⇒Check pricing and availability for Marcelo Uribe

Self-drive

The main advantage of self-driving is complete flexibility and the ability to stay for multiple nights. For Chiloe, the disadvantages include the cost of the car and transporting it on the Chiloe ferry, the need to drive rather than enjoy the details of the scenery, and the loss of fascinating stories that surround this island. Also, while the Panamerican highway (highway 5) running through the island is fine, many of the backroads are unpaved and not well signposted.

We allocated one day for our visit and opted not to have a car, choosing to hire the private guide above. However, had we understood the distance and time to travel between the Chiloe Island penguins and Castro palafitos, we might have scheduled our time to allow for at least one night on the island.

If we chose to drive, we would have rented a car through RentalCars.com, as we had in Santiago, Salta, and Buenos Aires. Their online system is easy to use. They provide a conglomerate listing of local dealers. Rather than working with the Spanish speaking companies directly, we had English speaking customer service. Plus, when one of the companies accidentally overcharged us, Rental Cars effortlessly (on our part) got us our refund.

⇒ Compare rental car pricing at RentalCars.com

Where to stay in Castro Chiloe

If we had stayed the night, it would have been at one of these two options:

Things to know before you tour Chiloe Island

• Wear layers, and bring a rain jacket.
• Eat seafood or fish on the island.
• There are bathrooms and a tiny cafeteria on the ferry to Chiloe.
• There are few other public bathrooms on the island, use them when you see them. It might be a while before the next one appears.
• Bring toilet paper (this goes for everywhere in South America).

Travel planning tips

This site contains affiliate links to products and/or services. We may receive a commission for purchases made through these links at no additional cost to you.

Flights: We use Skyscanner to find all the available flight options at the best prices.

Rental Car: We always use RentalCars.com, a rental car search engine with no hidden costs.

Accommodations: We use Booking.com to find all levels of accommodations when we travel.

Travel Insurance: We purchase insurance that covers medical and travel emergencies when we head overseas. We start with World Nomads.

Packing Tips: Get a free copy of our packing light checklist when you sign up for our mailing list. (We pack light, yet have everything we need.)

**Find more money-saving resources on our Travel Resources page.

Please Share

If you enjoyed this article, please share it on social media, including Pinterest.

Our day on Chiloe Island was part of our larger South American itinerary

Penguins, stilted house, churches, or nature, what will bring you to Chiloe Island?