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.
qOA5pFr2Nd8Three Indian nationals have been arrested and charged over the killing of Sikh separatist leader…
President Joe Biden has urged pro-Palestinian protesters on university campuses to uphold the rule of…
Blue Ivy Carter has joined the voice cast of The Lion King prequel Mufasa: The…
At least five people, including a four-month-old baby, have been killed after dozens of tornadoes…
Harvey Weinstein has been hospitalized just days after his 2020 rape conviction in New York…
Hamas has published a video showing the first proof of life of US and Israeli…