Chile derives from the Nahuatl (Aztec) word chīlli, meaning "chili pepper" or "where the land ends." The name traveled south with Spanish conquistadors who applied it to the long, narrow territory along the Andes' western flank.
The "end of the earth" interpretation fits Chile's dramatic geography—a 4,300km ribbon between the Andes and Pacific, terminating at Cape Horn. The Andes' towering wall (Aconcagua 6,961m) indeed marked a perceived world's edge for pre-Columbian peoples.
The country's name, the pepper, and the spicy stew all share the same Nahuatl ancestor—one of the Americas' most far-traveled words.