Calbuco is a city and commune in southern Chile administered by the Municipality of Calbuco. Administratively Calbuco belongs to the Llanquihue Province of Los Lagos Region. The origin of the city was the Spanish Fort Calbuco founded in 1603, and became later an important fish market. The archaeological site of Monte Verde lies within the commune. Calbuco Island is part of the commune and contains the city of Calbuco.
The settlement of Calbuco gre out of the fort Fuerte San Miguel de Calbuco which was founded in 1603 by Francisco Hernández Ortiz-Pizarro. Calbuco was the capital of Calbuco Department, Chiloé between 1834 and 1855, and of Carelmapu Department between 1855 and 1928. It was capital of Calbuco Department, Llanquihue between 1937 and 1975.

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