Chinchillas are crepuscular rodents, slightly larger and more robust than ground squirrels, native to the Andes mountains in South America. They live in colonies at high altitudes (up to 15,000 ft/4,270 m). Historically, they lived in the Andes of Bolivia, Chile, and Peru, but today colonies in the wild remain only in Peru and Chile. Along with their relatives, viscachas, they make up the family Chinchillidae.

The animal (whose name literally means "little chincha") is named after the Chincha people of the Andes, who once wore its dense, velvet-like fur. By the end of the 19th century, chinchillas had become quite rare due to hunting for their ultra-soft fur. Most chinchillas currently used by the fur industry for clothing and other accessories are farm-raised.