Several theories exist to the origin of the word Chile. One theory, the Incas of Peru, who had failed to conquer the Araucanians, called the valley of the Aconcagua by corruption of the name of a tribal chief called Tili. Tili who ruled the area during the time of the Incan conquest. One more theory points out the similarities of the Aconcagua valley with that of the Casma in Peru. In Casma Peru there was a town and valley named Chili. Others think that Chile may have derived its name from the indigenous Mapuche word chilli, which may have meant "where the land ends" or "the deepest point of the Earth".

Approximately 10,000 years ago, Native Americans migrating from the North settled in fertile valleys of South America which is now Chile. The Incas for a while extended their empire into what is present day northern Chile, but because of the area's remoteness, and the strong opposition that existed at the time extensive settlement was prevented.