The first settlers of the region of Masaya were of Chorotegano descent, originating from Mexico. These settlers were named Dirianes. The language of the Dirianes was Nahualt. Three theories exist about the origins of the name, Masaya. The first believes that Masaya or Masayan signifies "Place where there are deers", the second indicates that the origin signifies "Place among several water gaps" and the last version of the columnist Oviedo and Valdés assures that Masaya in the Chorotega language signifies "Mountain that burns", due to Volcan Masaya.

Masaya and Monimbó, two key native tribes of the Dirianes, were characterized for having painters of great imagination, creative artisans and large farmers. The town of Masaya, and mainly the neighborhood of Monimbó, was important native tribes of the Dirianes. To this day, the neighborhood of Monimbó holds the heart of the native customs and traditions. Masaya is proud and known to have kept the folkloric traditions and art to its truest form.