Officers were called to a disturbance at a home at Caravonica, northwest of Cairns, about 9.20pm on Friday where they found a man, 34, with four stab wounds.
A Queensland Ambulance Service spokeswoman said emergency crews treated the man for wounds to his torso but he died at the scene.
A 19-year-old man at the home was taken into custody and helped police overnight with their inquiries.
Officers arrested and charged him with murder on Saturday morning.
Far North District Crime Inspector Mick Searle said it appeared one of the men was in a relationship with the other's sister.
The 19-year-old is due to appear in Cairns Magistrates Court on Monday as police continue to investigate the death.
Five people were home at the time of the alleged murder, Insp Searle said.
"We're still conducting inquiries with witnesses and forensic examination in the area," he said.
"That will continue on until the detectives and the forensic specialists are satisfied that we have gathered all of the evidence that we can from that area.
"We believe a sharp-edged weapon was used."
Police have set up an investigation centre at the Cairns detectives' office and have urged anyone with information about the death to contact them.
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