The Collaborative International Dictionary of English v.0.48:

Llama \Lla"ma\, n. [Peruv.]
   1. (Zool.) A South American ruminant (Auchenia llama),
      allied to the camels, but much smaller and without a hump.
      It is supposed to be a domesticated variety of the
      guanaco. It was formerly much used as a beast of burden in
      the Andes, and is also kept on some ranches in the United
      States.
      [1913 Webster]

   2. The fleece of the llama[1], a fine, soft wool-like hair.
      [PJC]

WordNet (r) 3.0 (2006):

llama
    n 1: wild or domesticated South American cud-chewing animal
         related to camels but smaller and lacking a hump