Unexpected blasts throw thick grey blanket over parts of Chile and into neighbouring Argentina, with people evacuating worst-affected areas.
Ensenada, in the foothills of the volcano, looked like a ghost town on Thursday but for an occasional horse or dog roaming its only street. Most of the 1,500 residents had evacuated after the initial eruption on Wednesday, with only about 30 people refusing to leave out of worry for their homes and animals.
A second eruption, which began at 1:00 am on April 23 was even more powerful, the geological service said. Nearly three hours later, the second eruption was still going on, the service Tweeted, saying "There is no third eruptive pulse. The second is not over."
The volcano is located near the tourist location of Puerto Varas, about 1,000km south of the capital, Santiago.
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Video #4 from Puerto Montt
Volcano Calbuco in southern Chile erupted for the first time in more than four decades on Wednesday, sending a thick plume of ash and smoke several kilometres into the sky.
The Calbuco volcano is one of the most active in Chile, but its eruption took officials in the area by surprise.