Matagalpa is the forth biggest city in Nicaragua, after Managua, Leon and Granada.

Granada and Leon arfe colonial cities founded by the Spanish "conquistadores", so they have names after cities of Spain. Matagalpa instead is a Indian name meaning "Let´s go to the rock", it had been known as the main Indian town untill gold was dsicovered there in 1850, the many European and North American gold prospectors started arriving and settling in the city. Matagalpa residents started growing coffee by 1854, but it was not untill the 1890s when coffee farms surpassed gold as main local business. By 1840s Matagalpa was the biggest city in coffee exports in the country.  

Matagalpa coffee farms were also the first Ecotourist destination in the country, the province has several mountain inns and a Mountain Resort. The province is a paradise for birds and orchid watchers, it has more than 300 kind of birds and 200 kind of orquids.

Matagalpa is the melting pot of Nicaragua: Indian, Spanish and North Europeans had mixed here, the resulting blend gives Matagalpans a distinctive complexion, so is not uncommon to hear the expresion that "Matagalpa has the most beautiful women of the country", Eddy Kuhl