Chile and Argentina are the main walnut producers in South America. Chile has 14,400 hectares and Argentina nearly 18,000. The walnut areas are located in many valleys, along both countries. Growing conditions range from dry and warm climatic conditions, in the north, to rainy and cold summers in the south. In Argentina, where walnut groves are submitted to more extreme climatic conditions, they are present from Catamarca in the north, to Viedma in the south (a distance of close to 2,500 kilometers). In Chile walnut plantations go from Ovalle to Los Angeles (900 kilometers from north to south). All the production requires irrigation. Irrigation systems, and overcoming problems associated with this technology are very important in the success of this industry. In the same way, frost, wind, and rain damage are important production limitations that need to be managed. Both countries began commercial walnut industry when grafting methods were developed, beginning of the 1980's. In Chile patch budding is the most popular nursery system, but in Argentina, lateral grafting on 2- or 3-year-old rootstock is the most common way to establish a new orchard. The most important varieties in Chile are 'Serr' and 'Chandler', with a smaller area planted to 'Howard' and 'Vina' seedlings. Argentina has focused its industry mainly on 'Chandler'. 'Serr' in Chile requires avoidance of PFA (Pistillate Flower Abscission), which varies from 20 to 80% depending the season. Trials carried out in the country have substantially improved fruit production. Management methods for pruning and training, plant nutrition, irrigation, pest and disease control are well developed in South America. However, root and collar rot, walnut blight, codling moth and mites are permanent problems. Presently, no blackline or Armillaria problems are present in either country. Mechanical harvest and controlled dehydration are rapidly being developed, in order to export high quality walnuts to the Northern Hemisphere.