Butia is a municipality in the state of Rio Grande do Sul, in southern Brazil. It lies in the southern portion of the country, within a region of rolling hills and rural countryside typical of the state's interior.
Like many small municipalities in Rio Grande do Sul, Butia is primarily an agricultural community, with its local economy and daily life centred on farming and related activities. The surrounding landscape is characterised by the mixed vegetation and temperate climate common to this part of southern Brazil.
The city shares its name with the Butia genus of palms, which are native to South America and found in Brazil, Paraguay, Uruguay and Argentina. Several species of these palms produce edible fruits that are sometimes used to make alcoholic beverages and other foods. The name itself derives from a Brazilian vernacular word for members of the genus.