"We declare Hezbollah a terrorist organization and will include it in the registry of persons and institutions linked to acts of terrorism and its financing," said Luis Suazo, Honduras' deputy security minister.
Hezbollah, which has political and military wing, plays a major role in Lebanon's government, as they have several ministers in the parliament.
The Lebanese organization is closely aligned with the Iranian government and Islamic Revolutionary Guard Corps (IRGC), which are both sanctioned by the U.S. government, with the latter being designated a terrorist group by the U.S. Treasury.
Honduras' decision to designate Hezbollah a terrorist organization comes a week after Guatemala's new president, Alejandro Giammattei, said he would label the Lebanese group a terrorist entity and move his country's embassy in Israel to Jerusalem.
With recognizing Hezbollah as a terrorist organization, the two Central American nations are signaling to the U.S. that they are in line with Washington's foreign policy.