The Huilliche in Chile's Chiloé Archipelago rose up against Spanish encomenderos in revenge for perceived injustices.

The Huilliche, Huiliche or Huilliche-Mapuche are the southern partiality of the Mapuche macroethnic group in Chile and Argentina. Located in the Zona Sur, they inhabit both Futahuillimapu and, as the Cunco or Veliche subgroup, the northern half of Chiloé Island. The Huilliche are the principal Indigenous people of those regions. According to Ricardo E. Latcham the term Huilliche started to be used in Spanish after the second founding of Valdivia in 1645, adopting the usage of the Mapuches of Araucanía for the southern Mapuche tribes. Huilliche means 'southerners' A genetic study showed significant affinities between Huilliches and Indigenous peoples east of the Andes, which suggests but does not prove a partial origin in present-day Argentina.

The Chiloé Archipelago is a group of islands lying off the coast of Chile, in the Los Lagos Region. It is separated from mainland Chile by the Chacao Channel in the north, the Sea of Chiloé in the east and the Gulf of Corcovado in the southeast. All islands except the Desertores Islands form Chiloé Province. The main island is Chiloé Island. Of roughly rectangular shape, the southwestern half of this island is a wilderness of contiguous forests, wetlands and, in some places, mountains. The landscape of the northeastern sectors of Chiloé Island and the islands to the east is dominated by rolling hills, with a mosaic of pastures, forests and cultivated fields.

The Huilliche uprising of 1712 was an Indigenous uprising against the Spanish encomenderos of the Chiloé Archipelago, which was then a part of the Captaincy General of Chile. The rebellion took place in the central part of the archipelago.

The encomienda was a Spanish labour system that rewarded conquerors with the labour of conquered non-Christian peoples. In theory, the conquerors provided the labourers with benefits, including military protection and education. In practice, the conquered were subject to conditions that closely resembled instances of forced labour and slavery. The encomienda was first established in Spain following the Christian Reconquista, and it was applied on a much larger scale during the Spanish colonization of the Americas and the Spanish East Indies. Conquered peoples were considered vassals of the Spanish monarch. The Crown awarded an encomienda as a grant to a particular individual. In the conquest era of the early sixteenth century, the grants were considered a monopoly on the labour of particular groups of indigenous peoples, held in perpetuity by the grant holder, called the encomendero; starting from the New Laws of 1542, the encomienda ended upon the death of the encomendero, and was replaced by the repartimiento.