The Lutheran presence in Nicaragua began in 1983 as a pastoral accompaniment for the refugee community of Salvadorans who settled there during the years of the civil war in El Salvador. In 1992, these refugees returned to their homeland after the Peace Accords were signed in New York City. The small group of Nicaraguans who had received these refugees and had worked with them decided to continue the Lutheran witness in their own communities. In June 1994, the church became a full member church of the Lutheran World Federation.

The Iglesia Luterana Fe y Esperanza de Nicaragua (ILFE) has developed a word and sacrament ministry in 24 communities in the city of Managua and the rural area surrounding the capital city. Each of these communities has a pastoral team which works under the supervision of ordained pastors. Besides the regular activities of the congregation, these teams also work in the development of the community, especially among women and children, and farming.

The Lutheran Church Fe y Esperanza in Nicaragua is one of the most dynamic churches in the region. It is growing rapidly, from 4 communities in 1991 to 24 communities today. These communities, as well as agricultural cooperatives, are found in both the urban and rural areas. The majority of the ILFE's members are peasants and small farmers in the rural areas and poor people in the suburban areas of Managua.

The church has approximately 2,000 members served by four full-time pastors and 20 pastoral teams. From time to time, the ILFE receives German vicars for internship.

During the Sandinista Government a major land reform took place. Farming cooperatives were formed and land was given to cooperatives, not to individuals. Technical assistance and financing for development were provided. Unfortunately, the present government has dismantled the apparatus which supported the farmer cooperatives, making it nearly impossible for farmers to get financing. The Lutheran Church in Nicaragua has work in three farming cooperatives in the Managua area. They try to provide technical assistance to the farmers, provide small grants to buy seeds and to prepare the land, and develop markets for their crops.

The ILFE sponsors a primary health care program which provides direct services in an outpatient clinic and is developing a Popular Health Care program for rural communities. Through these programs, people are trained in leadership and are able to take responsibility for their own health and work cooperatively with their neighbors. Together, they work to provide communities with the basic building blocks of health such as clean water, good nutrition, and proper assistance in childbirth.