Estelí, city, northwestern Nicaragua, capital of Estelí Department, in the central highlands at an elevation of about 840 m (about 2750 ft). It is the administrative, commercial, and manufacturing center for a diversified agricultural and lumbering region. Wood products and hats are manufactured. Estelí was founded by the Spanish in the 16th century. Prehistoric stone carvings are nearby. Population (1985 estimate) 30,600.