Cucao is a small settlement on Isla de Chiloé that serves as the primary access point to Parque Nacional Chiloé. It sits along the Río Cucao, the short river that drains Lago Cucao westward into the Pacific Ocean at Bahía Cucao.

The river also carries tidal marine influence inland, giving both Lago Cucao and Lago Huillinco brackish conditions within a watershed covering roughly 840 km².

The village has developed a tourism-oriented character, with hostels, dome accommodations, campgrounds, and horseback riding services available.

The surrounding area encompasses native flora and fauna, including the Zorro Chilote, birds such as the Chucao, and trees like the alerce and ciprés.

Nearby, Lagos Huillinco and Cucao together form a designated natural sanctuary of approximately 3,030 hectares, recognized for the exceptional brackish-water habitat they provide to a wide range of species.