It was named Gracias department until 1943. In colonial times, Gracias was an early important administrative center for the Spaniards. It eventually lost importance to Antigua, in Guatemala.
Lempira is a rugged department, and it is relatively isolated from the rest of the country. The highest mountain peak in Honduras, Cerro las Minas, is in Lempira. The department was named after Lempira, a local chieftain of the Lenca people who fought against the Spanish conquistadores in the early 16th century. Opals are mined near the town of Erandique.
The department covers a total surface area of 4,290 km2. In 2005, had an estimated population of 277,910.
Lempira is one of the poorest departments of the whole country and has the lowest Human Development Index.