The epicenter of the one and a half minute long temblor was reportedly Concepcion, 317 kilometers away from the capital Santiago.
The quake was felt over a wide area in most of the South American countries and the Pacific Tsunami Warning Center issued tsunami warning alonside the Pacific Ocean from Alaska to Japan.
The death toll is currently 120 but the number will rise, authorities said.
Chilean televisions released some footage showing the collapsed buildings and damaged houses and the journalists also confirmed the death toll in the region. Bridges also collapsed in the country and fires broke out.
Aftershocks also hit the region after the major quake, 6.9 on Richter scale at maximum.
Santiago International Airport was closed for 72 hours and the flights will be made through Mendoza of Argentina.
The quake even shook buildings in Argentina, 1.500 kilometers away from the epicenter.
Chilena President Michele Bachelet declared a state of catastrophe in three central regions of the country. Buchelet called on international community for help, noting that his country faces a major catastrophe.
Water level has risen by 2 meter on Chilean coasts just after the earthquake and the waves are reportedly travelling to Hawai beaches.
The quake is reported to be the greatest quake of the past 50 years.
The most devastating quake of the last century had hit Chile again with 9.5 magnitude, in 1960, killing more than 6 thousand people.
Another earthquake hit Japan, but causing no casualties.
The quake took place off Okinawa Island as Japanese Meteorological Agency said.
Currently, there are no reported casualties in this country, but just small-scale physical damage in water pipes.
Despite the quake, there is no Tsunami warning for the country.
Nearly 6.400 people lost their lives in Kobe in 1995 earthquake.