A 34-year-old man was found by emergency services with life-threatening injuries, following reports of a stabbing, just after 2am on Thursday.
The man was transported to hospital but died a short time later.
The 18-year-old was taken into custody at the scene and later charged with murder.
Police say the two men were known to each other.
The 18-year-old man is due to appear at Mt Isa Magistrates Court on Friday.