The majority of people in Nicaragua (about 60%) are mestizos. Mestizos are individuals with mixed European and indigenous (Indian) ancestry. Whites, who are of European descent, make up less than one-fifth of the total population. In contrast, people of African descent, indigenous people, and other groups collectively make up about 25% of the total population.

There are two regions where the indigenous groups are settled. The west coast is home to a small number of Monimbó and Subtiava groups, as well as the Matagalpa who reside in the west-central city of the same name. On the east coast, the Miskito, Sumo, and Rama communities live. Additionally, the Garifuna (formerly known as Black Caribs) live in the eastern region. They are descendants of the Carib people and Africans who were exiled from British colonies in the eastern Caribbean (Lesser Antilles) in the 18th century. The Creoles, who are English-speaking blacks mainly from Jamaica, also live in the eastern region.