Sara churned menacingly near the Caribbean coast of Honduras on Friday, close to beach resorts and ancient Maya ruins popular with tourists, as the storm also took aim at neighbouring Belize and Guatemala.
The US National Hurricane Center forecast 40-65cm of rain in northern Honduras over the next few days.
Sara was located 55km southwest of Honduras' Guanaja island.
A motorcyclist rides on a street flooded by rains brought on by Tropical Storm Sara in La Lima. (AP PHOTO)
That dangerous storm system will likely cause "life-threatening and potentially catastrophic flash flooding and mudslides," according to the Miami-based centre.
Sara could also hit coffee production in Honduras, Central America's top producer.
More than 1000 Hondurans have sought refuge in shelters, according to officials, while the government declared a national emergency on Friday afternoon.
At a press conference, national head of risk management Jose Jorge Fortin urged locals to avoid flood-prone areas, among other precautions.
He noted that those living near riverbanks were especially vulnerable to flooding and landslides.
Sara is packing 80km/h winds, and the NHC estimates that "some slight strengthening is possible" over the next couple days provided the storm stays offshore.
It will likely shift to the northwest, toward Belize, starting on Sunday, according to meteorologist Victor Ortega.
After leaving Honduras, Sara is expected to dump between 5-15 inches of rain across parts of Belize, El Salvador, eastern Guatemala, western Nicaragua and the southern Mexican state of Quintana Roo, according to the NHC.Â