Gracias is a small Honduran town/municipality that was founded in 1536, and is the capital of Lempira Department.

Lempira is one of the 18 departments in Honduras. located in the western part of the country, it is bordered by the departments of Ocotepeque and Copán to the west, Intibucá to the east, and Santa Bárbara to the north. To its south lies the El Salvador–Honduras border. The departmental capital is Gracias.