We surveyed the coast of Chile between Isla Terhalten (54° 20′ S) and Islote Leonard (55°  44′ S) by boat during November–December 2005 to document breeding locations of Rockhopper (Eudyptes chrysocome chrysocome) and Macaroni (E. chrysolophus) penguins, and to count the number of nests during the early incubation period. A yacht-based observation recorded 1,000 Rockhopper Penguin nests at Isla Terhalten. Ground-based counts at Isla Noir estimated a total of 158,200 Rockhopper and 3,470 Macaroni penguin nests in 17 mixed colonies and one Macaroni Penguin breeding colony. The Rockhopper population on Isla Noir increased significantly from the previous estimate of 70,000 pairs, making this island the most important breeding site for the southern subspecies of Rockhopper Penguin. The new estimate for Rockhopper Penguins suggests a population increase over the last 20 years, consistent with recent data for the main colony in Argentina. Conservation status of the species and the factors potentially responsible for population declines elsewhere may need to be re-evaluated.