The strongest yet occurring on Sunday evening, according to the Nicaraguan Geological Institute (NGI).
Fiery rocks and gases spewed from the crater that night, dusting nearby towns with ash and awing residents as incandescent material shot into the night sky.
"It spat hot rocks, gas and ash, reaching a height of 400 metres," the NGI said in a statement.
The flaming rocks caused vegetation on the volcano's slopes to catch fire and fiery balls of burning foliage created a spectacle for observers.
"It's amazing," said nearby villager Martha Reyes, speaking to the Channel 8 network.
The nearby towns of Posoltega and Guanacastal were dusted in ash following the eruptions, though no major damage or injuries were reported.
The geological agency said the seismic activity remained within normal range for the time being.
"There is no danger, no extreme activity, that indicates an evacuation is necessary," said the director of Nicaragua's disaster prevention agency, Guillermo Gonzalez.
But three evacuation centres were set up in nearby towns in case Telica's activity increases.
Telica, which is 1,061 meters tall, is located in the foothills of the Maribios, about 112 kilometres northwest of the Nicaraguan capital Managua.
Telica's last major eruption was in 1948, though activity occurs every few years.
Nicaragua has at least 27 active volcanoes.
- Daily Mail