Panguipulli was officially founded in 1946. The first settler, Guillermo Angermaier, arrived in 1885, and in 1903 came the Capuchin mission, whose splendid church built by father Bernabé Lucerna in 1947 we can still appreciate today.
On the coast you will find a monument to the forgers and founders of Panguipulli, a sculpture made by Osvaldo Peña in which Capuchin, pioneers and Mapuche are represented in a common hommage to those who were originary inhabitants.
At present, it is a touristic and commercial centre, a traditional halt for those travellers who come from Argentina sailing on lake Pirihueico, and together with Lican Ray they form an attractive holiday alternative.
In 1935 the pebbled road was traced and in 1954 the railroad arrived.
The road around lake Panguipulli was finished in 1983 with many inconveniences in winter.