The city is located on a chain of mountains at 14°5′N 87°13′W, at an elevation of 3,250 feet (990 m). The Choluteca river, which crosses the city from south to north, physically separates Tegucigalpa and its sister city Comayagüela. The Picacho hill, a rugged mountain of moderate height (1,240 m/4,068 ft), rises above the downtown area; several neighborhoods, both residential and shanty towns, are located on its slopes. The city is comprised of gentle hills, and the ring of mountains surrounding the city tends to trap pollution. During the dry season, a dense cloud of smoke lingers in the basin until the first rains fall.

Of all the major Central American cities, Tegucigalpa's climate is among the most pleasant due to its high altitude. Like much of central Honduras, the city has a tropical climate, though tempered by the altitude — meaning less humid than the lower valleys and the coastal regions — with even temperatures averaging between 19 and 23 degrees Celsius (66 to 74 °F). The months of December and January are coolest, whereas March and April—popularly associated with Holy Week’s holidays—are hottest and driest. Precipitation is spread unevenly along the year; during the Caribbean hurricane season (June to November), it may reach 920 mm (36 in) at the end of a normal day.

History
Tegucigalpa was founded by Spanish settlers as "Real Villa de San Miguel de Tegucigalpa de Heredia" on September 29, 1578 on the site of an existing native settlement. Before and after independence, the city was a mining center for silver and gold. The capital of the independent Republic of Honduras switched back and forth between Tegucigalpa and Comayagua until it was permanently settled here in 1880. It is said that the society of Comayagua, the long time colonial capital of Honduras, publicly disliked the wife of President Marco Aurelio Soto, who took revenge by moving the capital to Tegucigalpa. However, it is more likely that the change took place because President Soto was an important partner of the Rosario Mining Company, an American silver mining company, whose operations where based in San Juancito, about 40 km (25 mi) away from Tegucigalpa, and he needed to be closer to his personal interests.
The city remained relatively small and provincial until the 1970s when immigration from the rural areas began in earnest. During the 1980s, several avenues and some traffic overpasses were built, as well as a few large buildings, something relatively new to a city characterized until then by two-story buildings. Tegucigalpa continues to spread far beyond its former colonial core, towards the east, south and west, creating a large but disorganized new metropolis.
The city's main buildings include the former Presidential Palace (now a national museum), a 20th-century Legislative Palace, the headquarters of the Central American Bank for Economic Integration (CABEI) [1], the campus of the National University of Honduras (founded in 1847), an 18th-century cathedral and the Basilica of the Virgin of Suyapa.

Industrial production, small and mostly for local consumption, has increased since the 1970s with improved roadways. Products include textiles, clothing, sugar, cigarettes, lumber, plywood, paper, ceramics, cement, glass, metalwork, plastics, chemicals, tires, electrical appliances, and farm machinery. Some maquiladoras
 (duty-free assembly plants) have been established since the 1990s in an industrial park in the Amarateca valley, on the northern highway. Silver, lead, and zinc are still mined in the outskirts of the city.

Tegucigalpa Real Estate
Tegucigalpa real estate has experienced a 42% increase in real estate values in the last 5 years just like other cities in Central America, it continues to develop both commercial buildings and new suburban neighborhoods.  Most financial institutions like the giant international HSBC continues to play a key player in mortgage financing in the city.

Museums
There are a handful of history and art museums in the city: Identidad Nacional (recently founded), Nacional Villaroy, del Hombre, Historico Militar, Historia Natural and Galeria de Arte Nacional. Besides, Sala Bancatlan (Banco Atlántida) offers some arts exhibitions occasionally.

Shopping Centers
The epicenter of shopping in Tegucigalpa currently revolves around Multiplaza, a multi-level indoor shopping mall that includes a major grocery store, a movie theater complex, restaurants, banking and of course, many retail shops. There are other commercial centers on the city's Eastern neighbourhoods, like: Plaza Miraflores, El Dorado, Las Cascadas, Centroamerica, Los Castaños and Metromall.
The city seems to be experiencing a retail 'renaissance' as additional shopping malls, as big or bigger than Multiplaza, have either recently been opened or are under construction (as of January 2007).

Important Bilingual Schools
Acadamia los Pinares, American School of Tegucigalpa, Del Campo International School, Elvel School, Hillcrest School, Discovery School, Dowal School, Lycée franco-hondureno, Macris School, Summer Hill School, Antares (for girls) and Aldebaran (for boys), This are some of the best bilingual schools of Tegucigalpa.

Universities
Tegucigalpa is the national education center, with most universities and higher education institutions based there.
a) State-Funded: Universidad Nacional Autonoma of Honduras (UNAH), founded in 1847, and Universidad Pedagógica Nacional Francisco Morazan, founded in 1989 (UPNFM).
b) Privately Funded: Universidad Jose Cecilio del Valle, founded in 1978; Universidad Tecnologica Centroamericana  (UNITEC), founded in 1986 in Jacaleapa, member of Laureate International Universities; Universidad Católica de Honduras, founded by the Catholic Church in 1992; the Pan-American Agricultural School or Escuela Agricola Panamericana (widely known as Zamorano), located in Zamorano valley, 30 km (19 mi) east of the city, founded in 1941; and Universidad Tecnológica de Honduras (UTH), founded in 1986.

Sports
Tegucigalpa is home to Club Deportivo Olimpia and Club Deportivo Motagua, members of the Honduran National Soccer League. Between the two teams, they have won more than 30 Championships, and play their home games at Estadio Nacional Tiburcio Carias Andino.
There are also inter-city school sports championships.
There is a Coliseum used mainly for basketball but is also used as a music concert venue. There is also what is called a "Villa Olimpica" to practice Olympic sports such as boxing, archery, tennis and tae-kwon-do; it is located close to the National University.

Tegucigalpa Population
According to 2005 estimates, the city of Tegucigalpa has approximately 1.5 million people. The city-dwellers are predominantly spanish speaking mestizos and whites, with very small minorities of Arab immigrants from Palestine and Chinese. There are indigenous (Amerindians) and Afro-Latin American people as well. Further information in Demographics of Honduras

Places of Interest
There are several conventional tourist attractions in Tegucigalpa. Some places very interesting, such as: Parque La Leona, San Miguel City Cathedral, Villa Roy Museum, the former Presidential Palace, the Museum of National Identity, the National University, the Basilica of the Virgin of Suyapa, La Tigra National Park, Picacho Hill and its zoo, and Chiminikee (a science park and museum for children).
There are several charming colonial villages within easy driving distance from Tegucigalpa: Santa Lucia (12 km/7 mi away), Valle de Angeles (21 km/13 mi away), Ojojona, Yuscaran and San Juancito. Each has its own distinct character and sense of history and all of them make easy day-trips out of the city.

Tegucigalpa Night Life
Tegucigalpa is a modern city and full of life with lots of entertainment.  Most bars and discotheques can be found near Boulevard Morazán and Avenida Juan Pablo II.

One of most notable is called "Arenas" which is located near the end of Boulevard Morazán; about a block away from Popeye's chicken, going towards "Lomas del Guijarro." They feature beach volleyball and a bar. No one admitted under age 21, strictly enforced.