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city, southwestern Nicaragua, at the eastern foot of Masaya Volcano, just east of the small Lake Masaya in the rift valley between Lakes Nicaragua and Managua. Masaya serves as a commercial and manufacturing centre for the rich agricultural hinterland. Within the city, the indigenous Monimbo neighbourhood is known for its handicraft industries and festivals; other manufactures include rope, hammocks, palm hats, jams, and cassava starch.Masaya is accessible by highway and railroad from Managua, the national capital, and Granada city. It was a scene of heavy fighting between the Sandinista guerrillas and government troops in 1978-79, leaving much of the centre of the city in ruins. Pop. (2005) urban area, 92,598.