9 Best Things to Do & Places to Visit in Otavalo, Ecuador

Otavalo, Ecuador, is a must-visit destination for travelers seeking rich indigenous culture, breathtaking Andean landscapes, and vibrant markets. Nestled in the Imbabura Province, this charming town is best known for the Otavalo Market, one of the largest and most famous artisan markets in South America.

But beyond its colorful stalls, Otavalo offers a diverse range of experiences, from hiking to stunning waterfalls to immersing yourself in traditional Kichwa culture.

I’ve explored Otavalo’s hidden gems, and I can tell you—this town is more than just a shopping stop. You can visit Laguna Cuicocha, a mesmerizing crater lake, or trek to Cascada de Peguche, a sacred waterfall revered by locals. Animal lovers will enjoy the Condor Park, where rescued Andean condors are rehabilitated, while history buffs can step into Hacienda Zuleta, a colonial estate with deep historical roots.

Food is another highlight here—whether you’re savoring hornado (roast pork) at the market or sipping canelazo, a spiced hot drink, in a cozy café. If you love adventure, Otavalo also serves as a gateway to Cotacachi Volcano and the cloud forests of Intag Valley.

In this guide, I’ll walk you through the best things to do in Otavalo, from cultural experiences to outdoor adventures, so you can make the most of your visit to this unforgettable Ecuadorian town.

Top Things to Do & Places to Visit in Otavalo

This city was the birthplace of the Kichwa people of the Otavalos , one of the many pre-Hispanic cultures that inhabited these lands, and specialists in textile production . From this artisanal tradition and their ability to trade, the Artisan Market was born, which takes place daily in its main square.

Otavalo is one of the towns with the most history in Ecuador, where you can delve into the roots of indigenous communities. In addition, its small and charming historic center, its natural environment and its people make it an essential stop on a trip through Ecuador.

We visited Otavalo during our road trip through Ecuador and stayed only one day, which is not enough. If we could, we would add at least one more day, and Otavalo is one of those places where you feel at home. In addition, in its surroundings there are countless incredible places to make day trips.

what to do in otavalo ecuador

We will tell you about all of this below, pay attention because here are the best things to see and do in Otavalo and its surroundings:

1. Poncho Square and Craft Market

It is probably the best-known and most special attraction in the city: in the Plaza de Ponchos you can wander around craft stalls and pick up real treasures.

Although it is held every day (from 8am to 6pm), the important day is Saturday , when the Craft Market is the main attraction of the town and attracts thousands of visitors. But you know: if you go during the week, like we did, you won't be left wanting to shop 😉

From ponchos to blankets, from backpacks to jewelry, indigenous handicrafts are absolutely gorgeous and of course you will fall for them! After suffering in Laos from the high notes of a flute that Rober bought, I strictly forbade him from getting musical instruments… luckily he followed the rules and only bought an alpaca sweater to fight the cold of the Andes.

Otavalo Craft Market

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2. Free tour in Otavalo (currently not available)

If you are going to stay overnight in Otavalo, we recommend signing up for a 2-hour free tour. In reality, Otavalo does not have any significant monuments or large churches or squares, but we find it interesting above all to learn about its art, culture and history .

Guided by a local, you will visit the city's most important tourist sites , such as Simón Bolívar Park, the Church of San Luis, the Plaza de los Ponchos and the 14 de Mayo Market, where we recommend stopping for lunch.

Remember that free tours are visits that are based on tips, so at the end you should leave whatever you think is appropriate (we usually leave between €5-10 per person depending on the destination and how much we liked the guide).

3. Dine at the “El Buen Sabor” Gastronomic Market

When the sun sets, what until then has been a concrete esplanade with little interest to the northeast of Plaza de Ponchos begins to come to life. Here one of those street food markets that we love so much is set up.

This is the ideal place to try authentic Ecuadorian recipes, from fritada with llapingachos to mixed barbecued meat skewers. Take a stroll around the stalls, choose the dish you like best and sit at the communal tables with the rest of the locals.

The same stalls also sell drinks, although we recommend that you first stop at the supermarket right next door to buy something cold, like an Ecuadorian Pilsener beer.

Otavalo Local Gastronomic Market

4. Peguche Waterfall, one of the most beautiful places to visit in Otavalo

Less than 4 km from Otavalo we find this waterfall with a drop of about 20 meters that is quite impressive. Equally enjoyable is the path that leads to it, a cobbled path with walls covered in moss and in the middle of the forest, which will transport you to the worlds of Ghibli.

Before starting the tour you will pass through a narrow street full of small shops and restaurants, you know, tourist stuff. At the entrance you will have to pay $1 and from there you will walk along this path surrounded by trees for about 800 meters, until you reach the waterfall.

A few meters before you can turn left to go up to a viewing point from where you will have the waterfall in front of you, although the best views are from the small wooden bridge that crosses the river, and after crossing it, from another viewing point that is almost at the foot of the waterfall (and yes, you will most likely take a quick little shower).

The return can be done on the other side of the river, where there are several cabins with panoramic terraces where you can have a drink. The path is not as nice as the one on the way there, but this way you can make a loop.

Curiosity: this is a wonderful natural enclave where, as we were told, a purification ritual takes place during the indigenous Inti Raymi festivals.

Cascada de Peguche (2025) - All You Need to Know BEFORE You Go (with Reviews)

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5. Cuicocha Lagoon, the excursion you have to do in Otavalo no matter what

We had read that this was one of the most famous lagoons in Ecuador (and it's not because there are few of them), so after travelling along a panoramic road for about 17 km we stood in front of it and... Ñe.

We were a little disappointed, maybe the weather wasn't good, or we arrived too early or we didn't know how to find the best viewpoint. Before entering, you have to go through a security check where you give your details (entry is free ) and from there you first reach a main viewing point and then the area set up for tourists, with a restaurant, souvenir stalls and the pier to go out and explore the lake by boat .

But when we went there it was pretty dead and the views weren't too spectacular either. Back in the car we tried to go to the El Mirador restaurant which is on the main road, a little higher up, but we found it closed. So we were left wanting...

If you have time and desire, you can go trekking around the volcanic crater (estimate about 5 hours). We didn't have much time or desire to sweat a lot, so we took a half hour to relax and enjoy the views from the main viewing points .

Curiosity: Did you know that inside this volcanic lagoon there are two islets ?

To get there there is a paved road, but if you do not have a car there are tours from Otavalo , ask at your accommodation or at local companies upon arrival.

Cuicocha Lagoon excursion from Otavalo

6. San Pablo Lagoon

Cuichoca is not the only lagoon you can see in the surroundings of Otavalo, at the foot of the Imbabura volcano (which gives its name to this province) there is another amazing natural spot: the Laguna de San Pablo.

We arrived at the Puerto Lago restaurant , where there is a parking area perfect for a quick photo session with the lake in the foreground and the enormous volcano in the background.

The other side of the lake is where it seems to be best suited for spending a long time here. There are jetties from which to take a boat ride (about $3, 40 min), rent a kayak or gain a few pounds at the local food stalls.

Go kayaking on San Pablo Lagoon in Otavalo | Timbuktu Travel

7. The Milkman Viewpoint

A few kilometers from the center of Otavalo is the Mirador el Lechero, which offers a good panoramic view of the city and the surrounding area. On a clear day, you can also see Lake San Pablo and the Imbabura Volcano. It is named after the sacred tree that is located there.

This road leads to another of the main attractions of Otavalo: the Condor Park . If you know us a little, we always try to stay away from these types of centers where animals are "used" as a tourist attraction. Partly because of that and because we were told that the road to get there was in bad condition, we decided to skip these two stops.

8. Ibarra

Known as " The White City " due to the colour of its houses, it is one of the great colonial historical centres in Ecuador, with an interesting historic centre in which the Catholic Cathedral stands out.

It is located about 24 km north of Otavalo, in a beautiful natural setting full of volcanoes and lagoons, such as the Laguna de Yahuarcocha , which means "lake of blood" in Kichwa, referring to the massacre of the indigenous population by the Incas in their eagerness to conquer these territories.

You can complete a beautiful experience by boarding the Freedom Train , which travels about 30 km through beautiful landscapes until reaching the town of Salinas.

9. Mojanda Lagoons

Between the provinces of Pichincha (to which Quito belongs) and Imbabura, these lagoons extend, forming one of the most beautiful landscapes in all of Ecuador . It is made up of 3 different lagoons of volcanic origin, all 3 with unpronounceable names hehe (Karikucha, Yanakucha and Warmikucha).

This is a highly recommended excursion from Otavalo, but from what we were told the access road is dirt and rocky, so it is recommended to arrive in a 4x4 rather than in small cars like ours, so we decided not to risk it. On foot it is 13 km from Otavalo, for those who want to venture out. If you are up for it, you can sign up for a trekking tour to Cerro Fuya Fuya, the best panoramic point to enjoy this landscape.

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Useful information about Otavalo

Below we give you some practical tips to make the most of your visit to Otavalo:

› How to get to Otavalo from Quito

Otavalo is located about 90 km north of Quito and we believe that the best way to get there and enjoy the other attractions in the surrounding area is by renting a car . We used the Qeeq website with which we obtained the best price comparison. We booked the most basic car with Europcar for about €350 for 8 days.

If you want to get there by public transport , there are buses throughout the day that leave from the Quitumbe Terminal (south of Quito) or from the Carcelén Terminal (north). They take about 2 hours and cost about $3.

Finally, you have the possibility of visiting Otavalo on a day trip from Quito.

› Where to eat in Otavalo

To eat in Otavalo we recommend the daily menu at the Mi Otavalito restaurant , try the grilled chicken at Cucavi and of course, dine at the street stalls at the Gastronomic Market.

There are also plenty of Western food options (like burgers and pizzas), places to have a cocktail like La Taberna and places with craft beer, among which we recommend Latitud Cero.

› Where to stay in Otavalo

We stayed at Hostal La Rosa Otavalo , two blocks from Plaza de Ponchos, which is a great value for money. If you want something more charming, we recommend Hotel Otavalo .

This concludes our post on things to see and do in Otavalo. Are you thinking of visiting this small town in Ecuador? Enjoy it to the fullest! Have you already been there and do you know of more places to see? Tell us which ones are essential for you.

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