The Canadians completely collapsed on their biggest stage in 16 years, ending the dream of Brazil 2014.
Jerry Bengtson and Carlos Costly scored hat tricks for Honduras, while Mario Martinez had a brace. Iain Hume scored the Canucks' only goal after the team had fallen into a six-goal hole.
Canada finishes in third place in Group C. Honduras and Panama advance to the Hexagonal.
The match actually opened brightly for the visitors, who nearly found the net first though Tosaint Ricketts. The striker received a pass in the second minute across the box from Nik Ledgerwood, who had stripped a Honduran defender on the right side and served in the ball inside the six.
Ricketts couldn't get the ball out of his feet in time, and the Hondurans recovered just before he could slot it into the gaping net.
A few minutes later, it was Ricketts again that should have done better in front of goal, as an Atiba Hutchinson shot hit the post and rebounded to the 25-year-old. Again, Ricketts couldn't get a clean strike on goal, and the ball was blocked before it could reach the wide open goal.
The pair of missed chances seemed to galvanize the home side, which pushed forward with purpose and looked dangeround on every offensive thrust. Canada held out until the seventh minute, when Bengston found himself all alone inside the Canadian area and chipped an onrushing Lars Hirschfeld for the opening strike.
It was all downhill for Canada at that point, as Bengston doubled the lead ten minutes later following a Julian de Guzman turnover at midfield. Honduras added a third and a fourth by the 33th minute, and within the virtual blink of an eye Canada's hopes were pummeled.
The goals kept raining in when the second half commenced, as Honduras walked in almost unchallenged and grabbed a fifth through Costly. The hosts would pot three more before all was said and done, giving the home crowd reason to keep the party going.
Canada did find the net once, as Hume drew a free kick at the top of the Honduran box in the 77th minute and curled a well-struck shot into the far corner, but it was little consolation on a night when the Canadians did little more than provide cannon fodder.