Caucahué is an island located in the Caucahué Channel, Chiloé Province, Los Lagos Region (Region of the Lakes), Commune of Quemchi in southern Chile.

[2] The island supplies the city of Quemchi with farm and sea products.

The Caucahue were one of the canoe-going peoples that lived in the southernmost regions of Chile.

They were hunter gatherers and made good use of the sea's resources, living off sea food, seaweed and minor game that they found on the island and its surrounding areas.

Along with farming, today's inhabitants of the island still use the sea as a livelihood, and sell their seafood and farm produce at the Quemchi free market located right across the channel on Chiloé Island.