A city tour by horse-drawn carriage will give you a good sense of the rich history and authenticity of Spanish-colonial Granada while Lake Nicaragua provides the perfect setting for a boat trip through the lake’s numerous small islands. ‘Las Isletas’ were created by an eruption of the nearby (now dormant) Mombacho Volcano. You can visit this volcano as well, do some hiking, canopying, or just enjoy the magnificent views from the top.