A combination of economic development, improved education, increased access to safe water, and improved basic health programs has enabled Honduras to improve the health status of its population over the last three decades—an accomplishment of which the country can be justly proud. This paper examines the achievements of the Honduran health sector and discusses the challenges that need to be faced to modernize public sector financing, to improve public sector service provision, and to develop an appropriate policy and regulatory framework for pharmaceuticals and social security.