Ocotal is the capital of the Nueva Segovia Department in Nicaragua, Central America and the municipal seat of Ocotal Municipality.

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.