San Esteban is a municipality in the northeast of the Honduran department of Olancho, west of Dulce Nombre de Culmí, east of Gualaco and north of Catacamas.

[1] Costa Rican author Oscar Núñez Oliva set his 2000 novel Los Gallos de San Esteban in the municipality.

[2][3] The municipality was named in honor of friar Esteban Verdelete, a missionary who collaborated in the evangelism of the people of the region.

It was founded in 1808 by friar José Antonio Liendo y Goicoechea from Guatemala.

Of these, 90.33% were Mestizo, 6.11% Indigenous (5.84% Pech), 2.79% White, 0.36% Black or Afro-Honduran and 0.41% others.