As the wave entered the southwestern Caribbean, convection redeveloped and on October 26, the system spawned another low-pressure area which developed into Tropical Depression Twenty-six.

Beta underwent rapid intensification for several hours to attain its peak intensity with winds of 115 mph (185 km/h) on October 30.

Due to the storm's proximity to Central America, several countries were placed on alert and began allocating supplies for a potential disaster.

Several hurricane watches and warnings were raised for the small Colombian island of Providencia as well as the Nicaragua and Honduras coastlines.

As a tropical storm, Beta produced heavy rains over northern Panama, amounting up to 3 inches (76 mm), which caused several mudslides as well as three fatalities.

[6] At around 18:00 UTC, the NHC determined that Tropical Depression Twenty-Six had developed about 105 miles (169 km) north of the central cost of Panama.

[4] Located within an area of weak vertical wind shear and warm sea surface temperatures, the depression intensified.

[4][9] Beta intensified into a hurricane several hours later, with winds of 80 mph (130 km/h), as an eye became pronounced on infrared satellite images.

[10] With the formation of an eye, the chances of rapid intensification reached 62%, and the storm could possibly become a major hurricane—a hurricane with winds of 111 mph (179 km/h) or higher—before landfall.

[11] Beta continued to intensify as convection deepened around the 11.5 mi (18.5 km) wide eye,[12] strengthening into a Category 2 hurricane with winds of 105 mph (169 km/h).

The storm also began to turn towards the south-southwest as it reached its peak intensity and its maximum size, with tropical storm-force winds extending out 60 mi (97 km) from the center.

[13] Around 12:00 UTC on October 30, Beta made landfall in central Nicaragua near La Barra del Rio Grande with winds of 105 mph (169 km/h).

[16] The Office for the Coordination of Humanitarian Affairs in Panama alerted officials in Nicaragua, Honduras, Costa Rica, El Salvador and Guatemala about the possible impacts from Beta.

[17] Civil defence officials in El Salvador declared a pre-emptive alert due to the possibility of rain-triggered mudslides from the outer bands of Beta.

[18] Early on the morning of October 27 the Colombian Government issued a tropical storm warning for the islands of San Andrés and Providencia.

Of its 5,000 residents all stayed to weather the storm but, about 300 of them evacuated wooden homes on the beach for sturdier brick shelters inland on the island's mountains.

The Colombian Government provided 8 tons (7.2 tonnes) of food and emergency supplies, including 1,100 sheets, 300 hammocks, and 350 cooking kits to the island.

[21] On October 29, Nicaraguan President Enrique Bolaños declared a maximum "red alert" for the country's eastern coast.

[25] The government pre-positioned food, medicines, clothing, emergency supplies, and army rescue specialists in the most vulnerable areas to provide relief immediately after the storm passed.

[29] On October 29, Honduras President Ricardo Maduro declared a State of National Emergency as Beta was forecast to bring heavy rains up to 12 in (300 mm).

The National Armed Forces were placed in strategic areas and were on stand-by for search and rescue operations once the storm passed.

[33] A hurricane alert was put in place for areas north of the Nicaragua border but was cancelled on October 30 after Beta turned towards the southeast.

Heavy rains for the outer bands of Hurricane Beta, amounting up to 3 in (76 mm),[35] caused flooding and landslides in Panama.

[22] A total of 1,660 homes were damaged by the storm throughout the island, leaving 1.4 million Colombian peso (2005 COP; US$681) in repair costs.

Beta's arrival on the island was accompanied by a seven-foot storm surge, which damaged beaches, coastal houses and roads, and washed out a tourist footbridge.

[43] Heavy rains from Hurricane Beta, amounting up to 6.39 in (162 mm), and strong winds caused extensive property damage in Nicaragua.

The Colombian Red Cross Society and the National Disaster Response and Preparedness System (SNPAD) provided assistance to 600 families with non-food relief, pre-hospital care, first aid, temporary shelter and psychosocial support, and carried out a preventative health campaign on the island.

[43] On October 29, Diego Palacio, the Minister of Social Protection, flew to Providencia to assess the damage caused by Beta.

On November 1, USAID and OFDA airlifted 200 rolls of plastic sheeting, 5,020 ten-litre water containers, and 2,736 hygiene kits, valued at $120,877.

The United States embassy in Honduras also provided a C-12 Huron aircraft to transport 3,000 pounds (1,400 kg) to Puerto Lempira.