Nicaragua rewards those willing to get off the well-worn Central American trail. The country packs a lot of variety into a relatively small area — colonial cities, volcanic landscapes, Pacific surf, and Caribbean beaches — and it remains significantly cheaper than neighboring Costa Rica.
Granada is the obvious starting point: a well-preserved colonial city on the western shore of Lake Nicaragua with good food, lively nightlife, and easy access to day trips. The nearby Laguna de Apoyo — a crater lake in an extinct volcano — is one of the best places in the country for swimming and doing nothing for a day or two.
León is Granada's scrappier, more politically charged rival. It has a magnificent cathedral — the largest in Central America — excellent revolutionary murals, and the closest access to Cerro Negro volcano, where volcano boarding is the main activity: you hike up and slide down on a wooden board.
Isla Ometepe is the country's most dramatic landscape: two volcanoes (Concepción and Maderas) rising from the middle of Lake Nicaragua, connected by a narrow isthmus. You can hike either volcano, rent a motorbike to explore jungle tracks, swim in waterfalls, or simply sit by the lake. Getting here requires a ferry from San Jorge near Rivas — build in at least two nights.
San Juan del Sur is the Pacific surf hub. The bay itself is pretty but busy in season; the better surf beaches are accessible by boat or road north and south of town. During the weekend before Easter, it hosts one of Central America's more memorable parties.
The Corn Islands sit 70km off the Caribbean coast. Big Corn has better beaches; Little Corn — only reachable by a fast panga boat — has better diving and a slower pace. Getting there takes effort (fly from Managua or take a bus and boat), which is why they still feel remote.
Matagalpa and the surrounding highlands are coffee country. The hills around Matagalpa and Jinotega produce some of Central America's best coffee. You can visit cooperatives, stay on working finca farms, and hike through cloud forest.
Masaya is worth visiting for its volcanic crater — you can drive right up to the lip of Volcán Masaya and look down into the lava lake — and for its artisan market, the best in the country for hammocks, pottery, and leatherwork.