The outer bands of Dolly brought rainfall to southern Texas, which caused minor flooding, but was mostly beneficial due to drought conditions in the state.

A large tropical wave, an elongated trough of low pressure, emerged into the Atlantic Ocean from the west coast of Africa around August 9.

Although deep convection was associated with the wave when it entered the Atlantic, showers and thunderstorms remained minimal for several days as the system tracked westward.

Around that time, a reconnaissance aircraft flight indicated a low to mid-level circulation, but the system was too weak to classify using the Dvorak technique.

After a center fix was made by another reconnaissance flight and satellite imagery, as well as a ship observing winds of 52 mph (84 km/h), the system was classified as Tropical Depression Four at 06:00 UTC on August 19, while situated about 140 mi (230 km) west-southwest of South Negril Point, Jamaica.

Because it developed near a mid to upper-level anticyclone, conditions were favorable for intensification, with the system becoming Tropical Storm Dolly around 18:00 UTC on August 19.

At 17:30 UTC on August 20, Dolly made landfall near Punta Herrero, Quintana Roo – located northeast of Chetumal, with winds of 75 mph (120 km/h).

[1] Late on August 21, Dolly emerged into the Bay of Campeche, with satellite imagery indicating that convection was displaced to the south of the center of circulation.

At 12:00 UTC on August 23, Dolly reintensified into a hurricane and attained its peak intensity with maximum sustained winds of 80 mph (130 km/h) and a minimum barometric pressure of 989 mbar (29.2 inHg).

Just three hours later, another tropical storm warning was put into effect between San Pedro Town, Belize, and the Mexican border.

When Dolly entered the Bay of Campeche on August 22, a hurricane watch was put into action for Veracruz, La Pesca, and all areas in between, at 09:00 UTC.

In Texas, Cameron County officials purchased satellite telephones and generators and released 55 prisoners because of fear that the newly built jail might not withstand a hurricane.

[10] In Tampico, near the location of the storm's second landfall, the streets were littered with fallen trees branches, utility poles, and billboards.

[11] Six other deaths occurred in Veracruz, five from a ship capsizing near Boca del Río and another after a person was caught in an undertow offshore Úrsulo Galván.

[12] Hundreds of homes were destroyed leaving 35,000 people homeless and there was severe damage in Tuxpan, Tamiahua, Pueblo Viejo, Platon, Pánuco, Tampico Alto, and elsewhere along the coast of northeast Mexico.

[13] In Sinaloa, three fatalities occurred, two when two people stepped into a puddle of water electrified by a downed power line and another from a weather-related traffic accident.