Guatemala City,, is the national capital and largest city of the Republic of Guatemala. It is also a municipality capital of the Guatemala Departm…Guatemala City,, is the national capital and largest city of the Republic of Guatemala. It is also a municipality capital of the Guatemala Department and the most populous urban metropolitan area in the region of Central America. The city is located in the south-central part of the country, nestled in a mountain valley called Valle de la Ermita.