AbstractCopahue volcano straddling the edge of the Agrio‐Caviahue caldera along the Chile‐Argentina border in the southern Andes has been in unrest since inflation began in late 2011. We constrain Copahue's source models with satellite and airborne interferometric synthetic aperture radar (InSAR) deformation observations. InSAR time series from descending track RADARSAT‐2 and COSMO‐SkyMed data span the entire inflation period from 2011 to 2016, with their initially high rates of 12 and 15 cm/yr, respectively, slowing only slightly despite ongoing small eruptions through 2016. InSAR ascending and descending track time series for the 2013–2016 time period constrain a two‐source compound dislocation model, with a rate of volume increase of 13 × 106 m3/yr. They consist of a shallow, near‐vertical, elongated source centered at 2.5 km beneath the summit and a deeper, shallowly plunging source centered at 7 km depth connecting the shallow source to the deeper caldera. The deeper source is located directly beneath the volcano tectonic seismicity with the lower bounds of the seismicity parallel to the plunge of the deep source. InSAR time series also show normal fault offsets on the NE flank Copahue faults. Coulomb stress change calculations for right‐lateral strike slip (RLSS), thrust, and normal receiver faults show positive values in the north caldera for both RLSS and normal faults, suggesting that northward trending seismicity and Copahue fault motion within the caldera are caused by the modeled sources. Together, the InSAR‐constrained source model and the seismicity suggest a deep conduit or transfer zone where magma moves from the central caldera to Copahue's upper edifice.