On October 23, Olivia attained hurricane status, and the next day reached Category 3 intensity on the Saffir-Simpson scale just before moving ashore Mazatlán in northwest Mexico.

The origins of Olivia were from an extended area of convection, or thunderstorm activity, that persisted southwest of Mexico in late October.

Following the development of a circulation, the system formed into a tropical depression early on October 22 about 430 mi (690 km) southwest of Manzanillo, Colima.

[3] Accurate forecasts from satellite and ship data were credited with preventing a significant death toll,[1] although the population did not know of the storm's approach until a day before landfall.

[4] As Olivia moved ashore, it produced locally heavy rainfall, peaking at 7.28 in (185 mm) in Pueblo Nuevo, Durango.

[6] The combination of strong winds and heavy rainfall destroyed about 7,000 homes in Mazatlán and 14 nearby villages,[1] with 10,000 houses damaged to some degree.

By a day after the storm's passage, the Mexican Navy sent two ships worth of relief supplies to Mazatlán, including water, medicine, and rescue equipment.