Lake Atitlán, a breathtaking crater lake in Guatemala’s Western Highlands, is surrounded by towering volcanoes and some of the most picturesque villages in Central America. This high-altitude gem was formed by a massive volcanic eruption over 84,000 years ago and is now one of Guatemala’s top destinations—especially for Overlanders looking to stay a while and explore the local way of life.
We fell so in love with Lago Atitlán that we ended up returning a second time, spending a total of three months exploring its stunning lakeside villages by water taxi and on foot. While many overlanders in Guatemala pass through quickly—or only stop in Panajachel, the most touristy and accessible town—they miss out on the vibrant culture and hidden gems that make this place unforgettable. If you really want to immerse yourself in Lake Atitlán, these are our favorite towns, hikes, and must-see spots. Don’t miss our video, “Mind Blown at Guatemalan Lake Atitlán,” to see the full overlanding experience.
Pasajcap Rentals: The Ideal Overlander Base Camp
To truly experience Lake Atitlán, you’ll want to explore its many lakeside villages and that means getting familiar with the local lancha (water taxi) system. But first, you’ll need a comfortable base to leave your rig and that’s where Pasajcap Rentals comes in.
Located just outside San Marcos La Laguna, Pasajcap is primarily a vacation rental property, but the owner, Pierre, also welcomes a small number of overlanders in a peaceful, grassy area overlooking the lake. The views are absolutely incredible.
Pasajcap also offers hot showers, laundry service, a weekly vegetable market, and sells meats and beverages on-site. The cherry on top is that the water taxi stops right at his private dock, making it one of the most convenient and scenic places to stay while exploring the lake.
Overlanding Note: The road down from Santa Clara to Lake Atitlán is extremely steep and narrow, with over 20 tight switchbacks. Our rig is 2.25m wide, 7.67m long, and 3.20m tall, and we caution anyone who is traveling with anything larger. It is important to be aware of the tight corners and steep descent if you come with a larger car, as well as the steep climb out when you leave.
San Marcos La Laguna: Laid-Back Lakeside Town
If you’re staying at Pasajcap Rentals, the closest town is San Marcos La Laguna—a small, peaceful village known for its spiritual and wellness scene. With its relaxed, bohemian atmosphere, it’s a popular hub for those interested in yoga, meditation, and holistic healing. After spending time on the road, the town’s cafés and eateries feel like a little slice of comfort. Our top pick is the fresh, flaky croissants from Circles Bakery, some of the best we’ve had on the road!
We also had the chance to witness a few parades and festivals during our time in San Marcos La Laguna. We stumbled upon a procession of elaborate floats, dancers in vibrant traditional costumes, and the sound of horns, marimbas, and fireworks echoing through the streets.
Hike to Jaibalito: A Hidden Gem not in most Guide Books
If you’re staying at Pasajcap Rentals and craving a bit more adventure than the stroll into San Marcos, consider hiking to the quiet village of Jaibalito—a true hidden gem on Lake Atitlán. Tucked away from the usual tourist trail, Jaibalito is only accessible by water taxi or on foot, which makes the journey part of the magic.
The trail hugs the hillsides above the lake, weaving through lush forest and offering breathtaking views of Lake Atitlán along the way. It’s a moderate hike that rewards you with solitude, stunning views, and a chance to experience one of the lake’s most authentic villages.
While there are countless chances to enjoy traditional Guatemalan dishes, Lake Atitlán also surprises with a wide range of international cuisine—thanks to the diverse community of expats who now call the lake home. One example of this is Restaurante Posada Jaibalito, run by Hans. His cozy eatery serves up delicious German comfort food like schnitzel and sauerkraut— a surprising and delicious treat after a few hours on the trail.
San Pedro La Laguna: For the Adventure Seekers
This lively town is a favorite among backpackers and adventure travelers, thanks to its energetic vibe and many options for exploration. With its abundance of hostels, cafés, and restaurants, San Pedro feels like the social hub of the lake.
It’s also a top spot for kayaking, boat tours, and hiking, with one of the most iconic treks being the early-morning climb to Indian Nose viewpoint. From there, you’ll witness a breathtaking sunrise over the lake and surrounding volcanoes.
And if you’re in the mood for something hearty and satisfying, head over to Smokin’ Joe’s BBQ—the self-proclaimed best barbecue in Guatemala. They serve up a weekend spread featuring steaks, ribs, sausages, burgers, and a full buffet of classic sides.
San Juan La Laguna: The Artisan’s Town
San Juan La Laguna is a colorful, creative gem on the shores of Lake Atitlán, known for its thriving artisanal scene and deep cultural roots. As you step off the water taxi, you’re welcomed by the Calle de las Artes—a vibrant street lined with galleries and workshops where local artists display everything from paintings to hand-carved woodwork.
For those looking to bring home something meaningful, San Juan is one of the best places on the lake to find authentic clothing souvenirs. We recommend visiting one of the women’s weaving cooperatives, where you can see the traditional process of creating beautiful textiles made with natural dyes.
San Juan also holds a special place in our hearts. It’s where we had the privilege of experiencing Semana Santa (Holy Week)—an unforgettable celebration filled with processions and alfombras, the elaborate carpets made of colored sawdust, flowers, fruits, and leaves. The community comes together using handmade stencils and pure creativity to transform the streets into stunning works of art.
And of course, no visit is complete without tasting the local food—grab a plate of freshly fried fish or ceviche from one of the town’s casual eateries, and don’t forget to explore the lively fruit and vegetable markets while you’re there.
Santiago Atitlán: Living Heritage and Tradition
Santiago Atitlán is one of the most culturally rich towns on Lake Atitlán, home to a large Tz’utujil Maya population and a strong sense of tradition that’s deeply woven into daily life. The bustling market is a feast for the senses, filled with vibrant textiles, hand-carved woodwork, and beautifully woven goods.
While you can reach Santiago via the public water taxi system, its location on the southern end of the lake often requires multiple boat transfers, making the trip a bit long and complicated. Instead, we chose to hire a private lancha driver, which gave us the freedom to explore on our own schedule—and we’re glad we did.
One of the most unique aspects of Santiago is its devotion to Maximón, a mysterious idol revered by many locals. Thought to offer help with everything from health and luck to love and fertility, Maximón is housed in a different family’s home each year and cared for by appointed guardians. Visitors can enter the house for a small fee which is an incredible experience, but don’t be surprised to find him draped in scarves, surrounded by candles, and offered cigarettes or liquor.
San Antonio Palopo: The Town of Blue Ceramics
San Antonio Palopó is a true hidden gem on Lake Atitlán’s quieter eastern shore—a place few travelers visit, largely because getting there typically requires hiring a private boat. But for those willing to make the trip, this charming village offers an authentic, off-the-beaten-path experience far from the lake’s more touristy towns.
Wandering the steep cobblestone streets, you’ll encounter some of the most unique handcrafted ceramics in Guatemala. The town is known for its signature blue pottery, often decorated with delicate teardrop designs, made right in the local workshops. San Antonio Palopó is one of the best places around the lake to buy a truly special souvenir—one that’s made by hand, on-site, by skilled local artisans.
Santa Catarina Palopó: A Village of Beautifully Painted Buildings
As part of our private boat tour around Lake Atitlán, we made a stop in Santa Catarina Palopó, a village that instantly stands out for its vividly painted buildings. Bright blues and turquoise tones cover the homes, accented by traditional Mayan motifs and patterns inspired by local textiles. This beautiful transformation is part of a community-led project designed to promote cultural tourism while celebrating the village’s artistic heritage.
Beyond the stunning visuals, Santa Catarina offers another great chance to sample local Guatemalan cuisine. Right on the lakefront, Laguna Azul is a lovely spot to grab a bite—refreshing smoothies, crispy fried plantains, and perfectly cooked shrimp dishes made it one of our favorite low-key meals on the lake.
Panajachel: Bustling Lakeside Hub
Known locally as “Pana,” Panajachel is the largest town on Lake Atitlán and a lively hub for travelers. With its mix of restaurants, markets, shops, and hotels, it can feel busy and touristy—but it’s also full of character and well worth a visit.
One of the highlights is the Reserva Natural Atitlán, a lush nature reserve just outside town. Here you can wander through the forest, cross canopy bridges, spot monkeys, and wander through the butterfly sanctuary.
Panajachel also happens to be home to one of our all-time favorite restaurants. If you’re craving something with a touch of elegance, head to Hotel Atitlán. With its stunning lake views, blooming gardens, and upscale atmosphere, it’s perfect for a special meal. We still talk about the surf & turf—absolutely unforgettable.
Lake Atitlán is a destination that rewards slow travel, with each town offering its own unique charm, culture, and experience for overlanders. From scenic hikes and vibrant markets to hidden food spots and colorful villages, exploring the lake by boat and on foot was one of the highlights of our journey through Guatemala.
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