The city is compact and public transportation consists of a small regular bus service that travels to the main attractions and other nearby locations like Puerto Montt, Frutillar, and Petrohue. Buses leave frequently from the corner of Del Salvador and San Pedro across from the pet shop. Passengers can travel to the southern part of the city by bus. There are taxis and colectivos outside the station.

The city is pretty compact and easily accessible on foot. It's a small town so many of the main attractions as well as dining and entertainment are found in the downtown area which is walkable. There are some pleasant paths to walk around the lakeside with places to stop off such as cafes, restaurants, and shops. Walking along the lakeside paths in town offers a glimpse at the picturesque lakefront promenade which is especially charming all lit up at night. The promenade is dotted with cozy cafes, great restaurants, small bars, and local shops.

There are taxis and collectivos in Puerto Varas. A taxi can be hailed from the street, found outside the bus station, or called and ordered by your hotel. Collectivos regularly depart from the bus station and a trip around town will initially cost CLP400-500 and then CLP1,500 per mile.

There are some scenic bike rides that can be taken around Puerto Varas. Mountain biking is increasingly more popular, especially through some of the stunning national parks in the area. Riders can take a whole day trip through Vicente Perez Rosales National Park on the Paso Desolacion Trail from Puerto Clocker which is located on the shores of Lake Llanquihue to Petrohue on the shores of Lake Todos Los Santos. This magnificent and exhilarating trail takes riders through cross-country descents that travel through verdant forests and old lava fields, the views are absolutely breathtaking. There are many rides around the beautiful lakes in the region also with different bike tours available such as The Bike and Beer ride with unparalleled views of lakes, and volcanoes stopping for refreshments along the way.

You can reach Puerto Varas via the lake crossing from Bariloche in Argentina and vice versa. The trip is called Lakes Crossing or Andean Crossing, it's a wonderful excursion and experience that can be done in a full day or with stops in Peulla on a two-day trip.

Renting a car in this remote area is a good idea and allows visitors to travel to different parts of the country at their own convenience. Driving is one of the most enjoyable ways to see the spectacular surrounding scenery. Rental cars are available at the airport and in some locations in town. Renting a car to reach Puerto Varas from the airport in Puerto Montt is a good option as it's about 12 miles between the cities and there isn’t much opportunity for public transportation.