On February 15, 1825, Simón Bolívar changed the city's name to Ayacucho. The city is named after the historical Battle of Ayacucho. Upon seeing so many casualties on the battlefield, citizens called the area Ayakuchu, aya meaning "dead" and kuchu meaning "corner" in the Quechua language. The Battle of Ayacucho was the last armed clash between Spanish armies and patriots during the Peruvian War of Independence. The battle developed in the nearby pampa of La Quinua on December 9, 1824. The patriot victory sealed the independence of Peru and South America. La Paz, now the capital of Bolivia, was similarly renamed La Paz de Ayacucho following this battle.
The city's economy is based on agriculture and light manufactures, including textiles, pottery, leather goods and filigree ware. It is a regional tourism destination, known for its 33 churches built in the colonial period, and for the nearby battlefield of La Quinua, where the Ayacucho battle was fought in 1824.
In 1980, the terrorist organization known as the Shining Path (Sendero Luminoso) used
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