The hurricane center expects the depression to track slowly northwest and then north across the Caribbean through Friday.
The depression is expected to bring 1 to 2 inches of rain over eastern Honduras and northeastern Nicaragua with isolated totals of 6 inches possible. Honduras and Nicaragua have issued tropical storm watches.
At 6pm Wednesday, the depression's center was about 110 miles southeast of the Nicaragua-Honduras border.
Heavy rains and flooding have killed more than 30 people in recent weeks and left 16 people missing.