An alpaca (Vicugna pacos) is a domesticated South American camelid.   It is related to a llama and looks like a small llama.  A camelid is a even-toed animal, camels, llamas and alpacas all fit in this group.   Alpacas live in herds on the Andes and in Ecuador and Chile.  Alpacas are bred for the fiber in their hair unlike llamas which are bred to be work animals. Alpaca fiber is used in  blankets, gloves, hats and scarves.