Chilly Peak is situated 2.5 miles (4.0 km) south of Ice Lakes in the Okanogan–Wenatchee National Forest.

Geological events occurring many years ago created the diverse topography and drastic elevation changes over the Cascade Range leading to the various climate differences.

The history of the formation of the Cascade Mountains dates back millions of years ago to the late Eocene Epoch.

[3] During the Pleistocene period dating back over two million years ago, glaciation advancing and retreating repeatedly scoured the landscape leaving deposits of rock debris.

Uplift and faulting in combination with glaciation have been the dominant processes which have created the tall peaks and deep valleys of the North Cascades area.