South American Fur Seals are found on both the Atlantic and Pacific sides of South America, from Isla Marco (Uruguay) to Isla Mayorca (Peru). Most of the population is concentrated in the Atlantic side of the distribution, especially in the Uruguayan islands. Colonies are often difficult to access and are not regularly dispersed. Along the coast of continental Argentina, 12 rookeries have been described, all on islands. Some of these locales are only used as wintering places. Ten colonies are recorded where reproduction takes place within the Falkland-Malvinas. In the Pacific, animals concentrate in southern (Magellanic region) and northern Chile and in central Peru. The species has a discontinuous distribution and it is absent in the coast of Chile from 28-43°S.

Distribution at sea is poorly known. These seals are thought to forage primarily in continental shelf and slope waters. However, there are records of this species occurring more than 600 km offshore. Vagrants have been reported from the Pacific coast of Colombia and the Juan Fernandez Islands, and the species visits southern Brazil regularly.