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Granada is historically one of Nicaragua's most important cities both economically and politically. It is situated on the northwestern shore of Lake Nicaragua. It was founded by Francisco Hernández de Córdoba on December 8, 1524. It has a rich colonial heritage, seen in its architecture and layout. Granada is commonly nicknamed the Gran Sultana del Gran Lago (Great Sultan of the Great Lake).

Granada has long been a center of commerce, including timber, gold and silver. Granada's economy continues to grow as it is becoming the national tourism hub. Though Granada remains Nicaragua's fourth largest city, it is widely known for preserving some the finest colonial-era architecture in the country.

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