The Battle of Ocotal occurred in July 1927, during the American occupation of Nicaragua. A large force of rebels loyal to Augusto César Sandino attacked the garrison of Ocotal, which was held by a small group of US Marines and Nicaraguan National Guards. Ultimately the rebels were defeated with heavy losses, while the Americans and their Nicaraguan allies suffered very light casualties.

The United States occupation of Nicaragua from 1912 to 1933 was part of the Banana Wars, when the U.S. military invaded various Latin American countries from 1898 to 1934. The formal occupation began in 1912, even though there were various other assaults by the U.S. in Nicaragua throughout this period. American military interventions in Nicaragua were designed to stop any other nation except the United States of America from building a Nicaraguan Canal.