We investigated whether domestic dogs (Canis lupus familiaris) influenced the use of space by chilla foxes (Lycalopex griseus) in southern Chile and tested the hypothesis that dogs interfere with chillas. We used scent stations and occurrence of scats within systematically placed plots to assess habitat use by both species and to test whether dogs were associated to the use of space by chillas. Activity data were obtained from captures for both species, and telemetry for foxes. Diet of both species was analysed in order to tease out the potential existence of exploitation competition.We found that, when active, chillas used prairies more and native forest less than expected according to availability, whereas inactive chillas (during the day) preferred native forest, the only habitat type that dogs did not use. The odds of dog occurrence increased at shorter distance to human houses, whereas the inverse pattern was observed for chillas. Poisson models showed that the number of chilla visits to scent stations was negatively correlated with the number of dog visits. We observed dogs persecuting and/or killing chillas which was also corroborated by local people that used dogs to prevent chilla-related poultry losses, supporting the idea that dogs harass foxes actively. The analysis of scats showed that dogs fed mainly on house food and domestic ruminant carcasses whereas foxes fed on hare, hens, mice and wild birds, thus suggesting that exploitation competition is not a strong alternative hypothesis as a proximate cause for the patterns observed. We conclude that dogs seem to constrain the use of space by wild carnivores via interference.