Honduras borders the Caribbean Sea on the north coast and the Pacific Ocean on the south through the Gulf of Fonseca. The climate varies from tropical in the lowlands to temperate in the mountains. The central and southern regions are relatively hotter and less humid than the northern coast.

The Honduran territory consists mainly of mountains (~81%), but there are narrow plains along the coasts, a large undeveloped lowland jungle La Mosquitia region in the northeast, and the heavily populated lowland San Pedro Sula valley in the northwest.

Unlike some of its Central American neighbors, Honduras can claim to have several of the traditionally Caribbean, white sandy beaches. The town of Tela is the primary vacation destination due its lovely beaches and its proximity to three national parks. Trujillo, La Ceiba and Puerto Cortes are also home to lush tropical beaches. Located inside the largest natural bay in Central America, Trujillo has some of the best beaches on the north coast of Honduras. The major modern resort hotels are in Tela and Trujillo.

Thirty-five miles north of Honduras' Caribbean coast lies the submerged Sierra de Omoa mountain range whose above-water cays and jungles are known as The Bay Islands of Honduras. Three main islands make up the Bay chain, and the waters around the islands are teeming with coral and tropical fish. Roatan is the largest island and hosts several resort hotels. The resorts all offer their share of swimming, sailing, scuba diving, canoeing and horseback riding. The island of Guanaja does not allow cars and its resorts are quite isolated. Utila is the smallest and flattest of the keys and is good for diving.