The flag of Nicaragua was first adopted on September 4, 1908, but not made official until August 27, 1971.

The two Azure bands on the flag and the arms of Nicaragua in use today is derived from that of the United Provinces of Central America.

The triangle, volcanoes, rising sun, Cap of Liberty, and rainbow all appeared on the original emblem.

The decision to revert to the emblems used by the United Provinces of Central America was taken in 1908 and reflected Nicaragua's aspirations for the rebirth of the political entity formed by the 5 nations.

Except for the text around the arms, the flag is very similar to that of the United Provinces of Central America.