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Guanacos are elegant and fine boned and stand approximately 3ft6" (1.06m) at the shoulder and weigh around 200lb (91kg). Like the llama, the guanaco is double coated with a coarse guard hair and soft undercoat, which is even more highly prized that that of the alpaca, although they carry far less of it. The colour varies very little, ranging from a light brown to dark cinnamon and shading to white underneath. Guanacos have grey faces and small straight ears. They are extremely striking with their large, alert brown eyes, streamlined form and their energetic pace. They are particularly ideal for keeping in large groups in open parkland situations.

A Dangerous Wild Animal Licence is required to keep guanacos, as, unlike llamas and alpacas they are not classified as "domestic" animals. However, the Association is lobbying for this to be reviewed.