It is situated in the southern Los Lagos Region in the Llanquihue and Osorno provinces.

The lake's fan-like form was created by successive piedmont glaciers during the Quaternary glaciations.

The last glacial period is called Llanquihue glaciation in Chile after the terminal moraine systems around the lake.

[9] Llanquihue Lake is located in southern Chile a territory of northern Patagonia in the Los Lagos Region.

The lake's views of Volcán Osorno make the surrounding cities such as Puerto Varas tourism hotspots.