Nicaragua became independent of Spain in 1821 and initially became part of the short-lived Mexican Empire in 1822. In 1823 joined the United Provinces of Central America, then, in 1838, became an independent republic.

British POs were opened at Bluefields on the Mosquito Coast and Greytown in 1857. British stamps were used from Greytown with cancellation C57 from 1865-82. The Bluefields office was closed in 1863. Nicaragua entered into an agreement with Seebeck in 1890 for the regular issue of new stamps each year. This followed until 1900 when the agreement was revoked. In 1904-12 separate stamps were overprinted locally for use in Bluefields (Zelaya) and Cabo Gracias a Dios. These were in a different currency because the value of the peso in these areas was higher than in the remainder of the country. A further general issue was made in February 1912 for six months.

In January 1937 General Somoza became president and his family controlled the country until defeated by left-wing guerillas.