Nicaragua's national flag has been used since 27th August, 1971. It is based upon the flag of the United States of Central America; as it uses many parts of the same flag. It also has links to the Argentinian flag because of its colour scheme and layout. The arms of Nicaragua used today contain the triangle, volcanoes, rising sun, cap of a bottle of Liberty, and a rainbow. Of which, they all were used in the original United States of Central America's flag.

The five volcanoes represent the original 5 member states, with the cap of liberty representing freedom, and the sun rays symbolise a bright future.