The nearly simultaneous invasions of Honduras in 1524 by rival Spanish expeditions began an era of conflict among rival Spanish claimants as well as with the indigenous population. The major initial expeditions were led by González Dávila, who hoped to carve out a territory for his own rule, and by Cristóbal de Olid, who was dispatched from Cuba by Cortés. Once in Honduras, however, Olid succumbed to personal ambition and attempted to establish his own independent authority. Word of this reached Cortés in Mexico, and to restore his own authority, he ordered yet another expedition, this one under the command of Francisco de Las Casas. Then, doubting the trustworthiness of any subordinate, Cortés set out for Honduras himself. The situation was further complicated by the entry into Honduras of expeditions from Guatemala under Pedro de Alvarado and from Nicaragua under Hernando de Soto.

In the initial struggle for power, Olid seemed to gain the upper hand, capturing both González Dávila and Las Casas. His captives, however, having managed to subvert the loyalty of some of Olid's men, took Olid prisoner, and then promptly beheaded him. Although later condemned for this action by a Mexican court, none of the conspirators ever suffered any real punishment.

The arrival of Cortés in Honduras in 1525 temporarily restored some order to the Spanish conquest. He established his own authority over the rival claimants, obtained the submission of numerous indigenous chiefs, and tried to promote the creation of Spanish towns. His own headquarters was located at Trujillo on the Caribbean coast. In April 1526, Cortés returned to Mexico, and the remaining Spaniards resumed their strife.

Some order was again restored in October of that year when the first royal governor, Diego López de Salcedo, arrived. López de Salcedo's policies, however, drove many indigenous people, once pacified by Cortés, into open revolt. His attempt to extend his jurisdiction into Nicaragua resulted in his imprisonment by the authorities there. After agreeing to a Nicaraguan-imposed definition of the boundary between the two provinces, López de Salcedo was released but did not return to Honduras until 1529.

The early 1530s were not prosperous for Honduras. Renewed fighting among the Spaniards, revolts, and decimation of the settled indigenous population through disease, mistreatment, and exportation of large numbers to the Caribbean islands as slaves left the colony on the edge of collapse by 1534. The Spanish crown renamed the depressed province as Honduras-Higueras, subdividing it into two districts. Higueras encompassed the western part while the rest remained known as Honduras. The decline in population of the province continued, and only the direct intervention of Pedro de Alvarado from Guatemala in 1536 kept Higueras from being abandoned. Alvarado was attracted by the prospect of gold in the region, and, with the help of native Guatemalans who accompanied him, he soon developed a profitable gold-mining industry centered in the newly established town of Gracias.

The discovery of gold and silver deposac3 osits attracted new settlers and increased the demand for indigenous labor. The enforced labor, however, led to renewed resistance by the native people that culminated in a major uprising in 1537. The leader of the uprising was a capable young Lenca chieftain known as Lempira (after whom the Honduran national monetary unit would eventually be named). Lempira established his base on a fortified hill known as the Peñol de Cerquín and until 1538 successfully defeated all efforts to subdue him. Inspired by his examples, other native inhabitants began revolting, and the entire district of Higueras seemed imperiled. Lempira was ultimately murdered while negotiating with the Spaniards. After his death, resistance rapidly disintegrated, although some fighting continued through 1539.

The defeat of Lempira's revolt accelerated the decimation of the indigenous population. In 1539 an estimated 15,000 native Americans remained under Spanish control two years later, there were only 8,000. Most of these were divided into encomiendas, a system that left the native people in their villages but placed them under the control of individual Spanish settlers. Under terms of the encomienda system, the Spaniards were supposed to provide the indigenous people with religious instruction and collect tribute from them for the crown. In return, the Spaniards were entitled to a supposedly limited use of indigenous labor. As the native population declined, the settlers exploited those remaining even more ruthlessly. This exploitation led to a clash between the Spanish settlers and authorities on one side and on the other side the Roman Catholic Church led by Father Cristóbal de Pedraza, who, in 1542 became the first bishop of Honduras. Bishop Pedraza, like others after him, had little success in his efforts to protect the native people.

Data as of December 1993