Genetic diversity studies in domestic animals allow evaluating genetic variation within and among breeds mainly for conservation purposes. In Chile exist isolated recovery programs, conservation and characterization of animal genetic resources, a consequence of which the vast majority of them have not been characterized, poorly used, and some of them have become extinct. The aim of this research was to determine genetic diversity and relationship between ’Araucana’ creole and ’Hampshire Down’ sheeps based on microsatellite markers; sheep breeds with similar phenotypic characteristics, raised in the south of Chile. A total of 64 ’Araucana’ sheep (’Araucana’ from Freire, AF: 27, ’Araucana’ from Padre Las Casas, AP: 10, ’Araucana’ from Chol Chol, AC: 15, ’Araucana’ from Villarrica, AV: 12) and 43 ’Hampshire Down’ sheep (’Hampshire’ from Marchigue, HM: 18, ’Hampshire’ from Valdivia, HV: 11, ’Hampshire’ from San José, HS: 14) were analyzed using 17 microsatellite markers for determine the genetic diversity and relationship between breeds. A total of 284 alleles were observed with average polymorphic information content equal to 0.76, showing that the microsatellites panel used was highly informative. Estimated heterozygosity ranged from 0.73 in ’Hampshire Down’ to 0.85 in ’Araucana’. The low inbreeding or endogamy coefficient (F IS, 0.022) and total inbreeding estimate (F IT, 0.070) indicated low level of inbreeding within and among breeds. The phylogenetic tree showed a separation between HS and HV, and the other sheep populations. The results indicated high genetic variability, low inbreeding, and low genetic differentiation, except for HV and HS, and were in according with geographical location and breeding practices.