Masaya sits just 30 kilometres south of Managua and is known for two things: its volcano and its crafts. The city is the handicraft capital of Nicaragua, and the Mercado de Artesanías — filling a gothic fortress-like building with hammocks, pottery, leather goods, wooden furniture, and embroidered clothing from across the country — is the best shopping for crafts in the country.
The Volcán Masaya National Park is the main draw. The volcano has an active crater, Santiago, where you can drive right up to the rim and peer into the glowing lava lake below. Evening visits are the most dramatic, when the orange glow is visible against the darkening sky. The Spaniards called it La Boca del Infierno — the Mouth of Hell — and planted a cross on the rim to ward off demons.
The city itself is lively and unpretentious. The Laguna de Masaya offers views across the water to the volcano, and the old centre has a few colonial churches and a pleasant central park. Thursday evenings bring the Jueves de Verbena — a weekly street festival with live marimba music, food stalls, and dancing that is one of the most genuine local celebrations in Nicaragua. Masaya makes an easy day trip from Managua or Granada, but staying a night lets you catch the volcano at dusk and the market without the tour-bus crowds.