Felix formed from a tropical wave on August 31, passing through the southern Windward Islands on September 1 before strengthening to attain hurricane status.

On September 4, Felix made landfall just south of the border between Nicaragua and Honduras, causing at least 133 deaths and hundreds of millions of dollars in damages in Central America.

A tropical wave moved off the coast of Africa on August 24, tracking westward at approximately 14 mph (23 km/h) with no associated deep convection and a weak low-level inverted-V curvature.

The system maintained curved rainbands with expanding outflow, and with light wind shear and warm water temperatures the environment favored further development.

[10] Its deep convection consolidated very near the center, and shortly after passing over the island of Grenada the depression intensified into Tropical Storm Felix early at around 0900 UTC on September 1.

[11] Felix quickly strengthened as it developed a small inner core of convection with tightly wound bands around the center,[12] and by late on September 1 an eye feature was observed on satellite imagery.

[14] Tracking through an area of extremely low wind shear and increasingly high oceanic heat content, Felix quickly developed a well-defined eye, a symmetric cloud structure, and strong upper-level outflow;[15] consequently, the hurricane commenced explosive intensification shortly afterward.

Subsequently, cloud tops near the center started to warm as the eye became less distinct,[20] and by 1800 UTC on September 3, Felix weakened to Category 4 status with winds of 145 mph (233 km/h).

By nine hours after moving ashore, the system maintained a well-organized cloud pattern and intense rainbands, although the winds rapidly decreased;[26] early on September 5 Felix weakened to a tropical storm as its upper-level circulation became detached from the low-level portion.

[27] The system deteriorated to a tropical depression as it crossed into southern Honduras, and at 0900 UTC the National Hurricane Center issued the last advisory on Felix as it began degenerating into a broad low pressure area.

[31] A hurricane watch was added to the islands early on September 2,[32] where several tourists attempted to leave by plane prior to the arrival of the storm.

At the same time, a hurricane watch was extended westward to the Honduras/Guatemala border,[38] and early on September 4 a tropical storm warning was put in place for the same region.

[42] At 1500 UTC on September 3, about 21 hours before its final landfall, the government of Nicaragua issued a hurricane warning from Puerto Cabezas northward to the national border.

On Trinidad, heavy precipitation caused mudslides and overflown rivers which destroyed some bridges; moderate winds damaged several buildings on the island.

[48][full citation needed] Hurricane Felix produced strong winds and 10 ft (3.0 m) waves along the north coast of Venezuela, which left one person missing in Puerto Cabello.

[54] According to official information, at least 40,000 people were affected and 9,000 houses destroyed, most of them in the Nicaraguan city of Bilwi (Puerto Cabezas), where a "State of Disaster" was decreed by the government.

[citation needed] The United States Agency for International Development (USAID) and the Office of Foreign Disaster Assistance (OFDA) airlifted 120 rolls of plastic sheeting to the severely affected areas, which was used to repair the damaged roofs of health clinics and schools.

[61] Due to the extensive damage and high death toll from the hurricane in Nicaragua, the name Felix was retired by the World Meteorological Organization in May 2008, and it will never be used again for an Atlantic tropical cyclone.