The southernmost city in South America is Ushuaia. The city of Ushuaia is considered to be the capital of Tierra del Fuego in Argentina. This place is commonly known as the southernmost city in the world and is located in the southern coast of Isla Grande de Tierra Del Fuego. Ushuaia as a city is a great place if you want to cruise in the wonderful Beagle Channel near Antarctica and enjoy the cool climate. This place is also known for its National Parks and vast bays.