Esquel is a town in the northwest of the province of Chubut, in the Argentine Patagonia. It is located in Futaleufú Department, of which it is the government seat. The town's name derives from one of two Tehuelche words. One meaning "marsh" and the other meaning "land of burrs", which refers to the many thorny plants including the pimpinella and other herbaceous plants whose fruits, when ripe turn into prickly burrs that stick to the animals' skins and wool or people's clothes as a way of pollination.

The founding of the town dates back to the arrival of Welsh immigrants in Chubut in 1865. The settlement was created on 25 February 1906, as an extension of the Colonia 16 de Octubre, that also contains the town of Trevelin.

The city, the main town of the area, is located by the Esquel Stream and surrounded by the mountains La Zeta, La Cruz, Cerro 21 and La Hoya. La Hoya is known as a ski resort with good quality snow right through the spring. The Los Alerces National Park is 50 km (31 mi) northwest of the city.