Carlos Rodriguez, the Honduran ambassador to Colombia, has been sacked after a wild Christmas party at the embassy in Bogota.
Ambassador Carlos Rodriguez has been told to resign “to safeguard relations with Colombia”, the Honduran Foreign Ministry said in a statement.
An investigation has begun into reports that two prostitutes had been invited to the party on December 20.
The two women have been accused of stealing laptop computers and mobile phones from the embassy.
An inquiry committee has been set up in Honduras, while in Colombia the authorities are trying to identify the two sex workers.
An employee close to Carlos Rodriguez has been accused of organizing the party and hiring the prostitutes.
An embassy vehicle was reportedly used to bring them into the building.
It is not clear whether the ambassador was present.
US secret service agents were involved in a similar scandal last year, ahead of an official visit by President Barack Obama to Colombia.
They were sent home and disciplined in April 2012 after being accused of taking prostitutes to their hotel rooms on the eve of the Summit of the Americas in the city of Cartagena.