The first Jewish immigrants were said to have arrived in Nicaragua, they came from France in the early 1800s. One of the first families were the Oppenheimers from France. They registered the birth of son, in 1911. Other families included the Dreyfus, Levy, Raskosky, and the Salomons. Another Notable family who appeared to be of Sephardi descent was the Rios-Montiel family of Juigalpa.

The community began when Jews arrived from Eastern Europe after 1929, and the majority of them made their homes in Managua, the capital city. The Jewish population probably never surpassed 250 members. The Jews in Nicaragua were a relatively small community, the majority lived in Managua. The Jews made significant contributions to Nicaragua’s economic development while dedicating themselves to farming, manufacturing, and retail sales. The Salomon and Dreyfus families both operated well known department stores in Managua during the first half of the 20th century.

The first synagogue in Managua was built on land donated by a man named Fidelio Kellerman, in the centre of town. In 1972, when the community was less than 50 years of age, the country was devastated by a major earthquake. The synagogue was destroyed by the earthquake. The synagogue in Managua was central to the life of the Nicaraguan Jewish community. There were no other Jewish institutions, and no other Jews. The congregation was tightly knit, uniformly Ashkenazic, and politically conservative. After the earthquake the Somoza government confiscated all the land in the city centre, so the Jews lost not only their building but the land.

In 1979 the government of Nicaragua was overthrown by the Sandinista government, which had a close relationship with the Palestine Liberation Organization. A new synagogue, had been built after the earthquake out near the edge of the city. It also functioned as a social club in the evening. This synagogue was attacked and fire bombed during shabbat services on a Friday night. Several of the people inside the synagogue were holocaust survivors. Several men threw Molotov cocktails at the wooden doors with a Star of David. Masked men with automatic weapons who identified themselves as Sandinistas and the PLO and said “If you don’t go back we will kill you. What Hitler started, we will finish.” The Jews went back into the building. Luckily, the fire was not serious and there were no injuries. The Sandinistas then confiscated this synagogue.

In 1990, Jews began returning after the overthrow of the Sandinista, however as late as the year 2000 the population was still around 50-60 people. On December 16, 2007, Nicaraguan Jews welcomed a new Torah after 28 years. On the following day, the Torah was used for the first time in a minyan at a Bar Mitzvah of a local Nicaraguan Jew. In 2017, 114 people converted to Judaism. At least half the candidates claimed Jewish ancestry. The conversions bring a significant influx of Jews to Nicaragua, however some congregants are not accepting of these converts.