The Alpaca (Vicugna pacos) is a domesticated breed of South American camel-like ungulates, derived from the wild vicuña. It resembles a sheep in appearance, but is larger in size, and has a long erect neck with a handsome head.

Alpacas are kept in herds that graze on the level heights of the Andes of southern Peru, northern Bolivia, and northern Chile at an altitude of between 3500 and 5000 meters above sea-level, throughout the year. They are not used as beasts of burden like llamas, but are valued only for their fiber, of which Indian blankets and ponchos are made in South America, sweaters, blankets, socks and coats in other parts of the world. The alpaca comes in more than 22 natural colours. In stature, the alpaca is considerably smaller than the llama.

In the textile industry, "alpaca" is a name given to two distinct things. It is primarily a term applied to the wool, or rather hair, obtained from the Peruvian alpaca. It is, however, more broadly applied to a style of fabric originally made from alpaca fiber but now frequently made from a similar type of fiber, such as mohair, Icelandic sheep wool, or even some high-quality English wool. In trade, distinctions are made between alpacas and the several styles of mohair and lustres. However, as far as the general purchaser is concerned, little or no distinction is made.