The agreement allows both countries to deepen dialogue in areas of shared interest such as politics, business and culture, Honduran Foreign Minister Mireya Aguero told a joint press conference with her Palestinian counterpart Riad al-Maliki.
The establishment of diplomatic relations with Honduras opens the door for other countries to recognize the state of Palestine and formalize ties, noted Maliki, who arrived in Honduras on Friday, Xinhua reported.
"As foreign ministers, we are going to take on the responsibility of deepening and expanding our relationship, spurring trade, investment and contact between Palestinian and Honduran business owners," Maliki said.
More than 130 countries have recognized the state of Palestine, with about 100 having established formal ties with it. Honduran President Porfirio Lobo recognized Palestinian statehood in 2011.
The UN General Assembly passed a motion late last year changing Palestine's "entity" status to "non-member observer state," giving implicit recognition of its sovereign state status.