Granada is also known as La Gran Sultana, in the reflection of its Moorish and Andalusian appearance, unlike its sister city and historical rival León, which displays Castilian trends.

This was done in honor of the city's capture by the forces of King Ferdinand II and Queen Isabella I from the Emirate of Granada, which completed the reconquista.

During the colonial era, Granada was a sister city to the settlement of Antigua Guatemala, maintained a flourishing level of commerce with ports in the Atlantic Ocean via Lake Cocibolca and the San Juan River, and was subject to attacks from English, French and Dutch pirates who unsuccessfully attempted to take control of the settlement by sailing up the San Juan River.

[4] On 29 May 1834, Cándido Flores, head of the military forces of Granada, revolted against the Government in León led by José Núñez, demanding the reform of the federal Constitution.

After being defeated in Managua he could not organize a resistance in Granada, so he left the city to a disorganized mob that committed lootings and robberies, especially in the houses of foreigners.

[5] Granada was also the site where American filibuster William Walker took up residence and attempted to take control of Central America and create independent colonies with economies based on slavery.

One of Walker's generals, Charles Frederick Henningsen, set the city ablaze before escaping, destroying much of the colonial-era architecture and inscribed the words "Here was Granada" on the ruins before he left.

Fishing in the lake is quite good, and fishermen, both commercial and recreational, regularly catch guapote and mojarras, as well as sardines.

Though Granada remains Nicaragua's sixth largest city, it is widely known for preserving some of the finest colonial-era architecture in the country.

Granada's economy continues to grow in big part because it is fast becoming a tourist attraction for its colonial architecture, as well as its ecological beauty and now as a food destination.

Following many years of neglect, primarily due to the economic collapse of the nation in the 1980s, most of Granada's buildings and infrastructure began to deteriorate.

In the decades that followed, however, the city government directed funds towards recognition and restoration of many of Granada's historic structures.

Residing here also are people from the United States, Canada, Spain, Germany, Italy, Ireland, Austria, the Netherlands, and France.

This, in turn, attracted foreigners to Granada seeking colonial homes for purchase, adding a growing number of Europeans and Americans to the city's population.