Quetzaltenango, city in southwestern Guatemala, capital of Quetzaltenango Department. Located on the Inter-American Highway, Quetzaltenango is a trade center for agricultural products; manufactures include wool and cotton textiles, shoes, beer, and processed food. The city was founded by the Spanish in 1524. It was rebuilt after 1902, when it was severely damaged by a volcanic eruption. Population (1995 estimate) 103,631.