Osorno, city (1990 est. pop. 117,400), Los Lagos region, S central Chile, in the heart of the lake district. Osorno is chiefly an agricultural processing and distribution center. Founded in 1558, it was later destroyed by the Araucanians and was reestablished in 1796 by order of Ambrosio O'Higgins. An influx of immigrants in the latter half of the 19th cent. has given Osorno the atmosphere of a German town. It has an active tourist trade.