The capital city of Djibouti is Djibouti City. This city not only serves as the capital but also as the largest city in the country. Located at the southern entrance to the Red Sea, Djibouti City is strategically positioned as a major trade hub due to its proximity to international maritime routes. It has a diverse population and a mix of cultures, which is reflected in its vibrant markets and cuisine. The city features a combination of modern architecture and historical sites, including the old French colonial buildings, showcasing its colonial past and cultural heritage.