city, northwestern Nicaragua. It is situated in the central highlands near the upper Coco River. It serves as a commercial centre for the hinterland, in which dairying (particularly butter production), the manufacturing of hammocks, and the gathering of pine pitch are the principal economic activities. Somoto is on the Pan-American Highway north of Managua, the national capital, and east of El Espino, at the Honduras border. Pop. (2005) urban area, 18,126.