Its early prosperity came from the raising of cattle, sugar cane, coffee, cocoa and indigo, which was helped by the presence of the Cauto River, enabling Bayamo to exist as an inland port until the 19th century.

Bayamo has great significance in the history of Cuba.  It was the birthplace of many of the heroes of the Ten Years’ War (1868-1878) and Bayamo was the first city taken by the revolutionaries following the declaration of independence of Cuba from Spain, the Grito de Yara, on October 6, 1868. It became the capital of the Ejercito Libertador de Cuba [the Cuban Liberation Army] who held it for nearly three months before a force of well armed Spanish soldiers was assembled to retake it from the revolutionaries. 

Today, Bayamo has a pleasant and relaxed atmosphere and makes few concessions to tourism.  The town is centered around Parque Céspedes which is a delightful, shady park containing long marble benches and statues of Carlos Manuel de Céspedes and Perucho Figueredo, who composed the Cuban national anthem, La Bayamesa, at his home, near Bayamo, in 1868.

It has an population of 132,000 (1995 estimate) and is now a manufacturing and transportation center, although cattle raising and sugar refining are still its main industries.  It is now the capital of the new province of Granma.