The city was founded by Dominican friars in 1543. In 2000 the estimated population was 70,000. Cobán is at the center of a region growing fine coffee.
Each year at the end of August a festival of Guatemala's native peoples is held here, La Fiesta Nacional Indigena de Guatemala. The festivities include a beauty pagent for Guatemala's Native American women, the winner of which is crowned with the title "Rabin Ahau".