The locals call Puerto Montt also Muerto Montt which seems to be quite reflective. Apart from the harbor and the supposedly great seafood (didn’t got the chance to try it) there’s nothing apart from big food stores, banks (cash is king) and gas stations which attracts a traveler to it.
The complete opposite is true for Puerto Varas. It has the charm of a Swiss mountain village with Alpine architecture, ample Kuchen shops and a beautiful mountain lake surrounded by volcanoes.
We even found an indoor playground for the kids (Kaffee Wild). Since it’s pretty posh/expensive in Puerto Varas we stayed at the eastern shore in Ensanada. Unfortunately, we could not fully make use of our huge screen towards Volcano Osorno since it was half covered by clouds at the time when we arrived.