The National System for Disaster Prevention and Mitigation (SINAPRED) warmed residents to protect their water and food supplies from falling volcanic debris, but activity soon subsided.
Telica, located about 50 miles northwest of Managua, is one of the country’s most active volcanoes.
SINAPRED said its seismograph readings did not indicate any rising lava associated with the explosion.
Agency geologists said this probably means the blast was due to a localized buildup of pressure within the mountain’s crater.
Last September, three powerful blasts from nearby San Cristobal volcano prompted authorities to evacuate about 3,000 people from communities around Nicaragua's tallest mountain.