Trader Llama is a llama variant that spawns alongside the Wandering Trader. It functions similarly to regular llamas but cannot be tamed while still attached to the trader. Trader llamas are automatically leashed to the Wandering Trader and follow them as they roam. Trader Llamas drop 0–2 leather upon death, which can be increased with the Looting enchantment.

A Trader Llama can be tamed if separated from the Wandering Trader by breaking the lead or if the trader despawns. To tame a Trader Llama, the player must ride it repeatedly until hearts appear. Once tamed, it can be bred using hay bales, producing a baby Trader Llama. Baby trader llamas take 20 minutes to grow into adults, but their growth can be accelerated by feeding them wheat or hay bales.

A tamed Trader Llama can be equipped with a chest, allowing it to carry 3–15 inventory slots, depending on its strength stat. It cannot be saddled or directly controlled, but can be led using a lead. If multiple Trader Llamas are leashed, they will form a caravan, following the leading llama, which allows for efficient transportation of multiple llamas at once. Trader Llamas are neutral mobs and will spit at hostile mobs and attackers, dealing 1 damage. They will also attack wolves on sight, similar to regular llamas. A tamed Trader Llama can be decorated with a wool carpet, giving it a unique appearance based on the color of the carpet placed in its carpet slot.