The term ALPACA HABITAT refers to the natural environment in which alpacas live. The two crossword solutions for this term are PERU (4 letters) and ANDES (5 letters). Peru is a country located in western South America, and the ANDES Mountains are a mountain range that runs along the western coast of South America. Alpacas are native to the high-altitude regions of the ANDES Mountains, and they are found in Peru, Bolivia, Chile, and Argentina.