Lago Ranco is a town and commune in southern Chile administered by the Municipality of Lago Ranco. It is located in Ranco Province in Los Ríos Region. Lago Ranco takes its name from Ranco Lake, which it shares with the commune of Futrono.

The Los Ríos Region is one of Chile's 16 regions, the country's first-order administrative divisions. Its capital is Valdivia. It began to operate as a region on October 2, 2007, having been created by subdividing the Los Lagos Region in southern Chile. It consists of two provinces: Valdivia and the newly created Ranco Province, which was formerly part of Valdivia Province.