Caribbean between October 9 and 10. A large low-pressure area formed as the wave interacted with the trough; however, convection decreased on October 10. After convection increased again, the eighteenth tropical depression of the season developed at 0000 UTC on October 11, while situated about southeast of Cabo Gracias a Dios, which is on the Honduras-Nicaragua border. About six hours later, the depression strengthened into Tropical Storm Paula. Steered northwestward around the southwestern periphery of a subtropical ridge, the storm made landfall near Cabo Gracias a Dios with winds of 50 mph (85 km/h) at 1200 UTC. Shortly thereafter, the storm began to significantly intensify, due to sea surface temperatures of , as well as light to moderate wind shear. Operationally, the National Hurricane Center did not initiate advisories until late on October 11, after satellite imagery, surface observations, and reconnaissance aircraft flight data confirmed the existence of a tropical cyclone; by this time, Paula was already a strong tropical storm. At 0000 UTC on October 12, Paula strengthened into a Category 1 hurricane on the Saffir–Simpson hurricane wind scale. Satellite imagery during the afternoon of October 12 indicated that Paula was a small hurricane, consisting of a round area of deep convection, with an eye feature developing. However, at 1800 UTC on October 12, the storm strengthened into a Category 2 hurricane while curving northward. Simultaneously, Paula attained its peak intensity with maximum sustained winds of 105 mph (165 km/h) and a minimum barometric pressure of . After reaching peak intensity late on October 12, strong upper-level west-southwesterly winds interacted with the system, prompting weakening. Paula was a very small hurricane; hurricane-force winds extended only from the center of Paula, while tropical storm-force winds extended from the same point. Paula moved north-northwest as the storm was impacted by a mid-latitude trough over the Gulf of Mexico. Increasing wind shear caused Paula to weaken to a Category 1 hurricane late on October 13. Satellite imagery and reconnaissance aircraft flights indicated that cloud pattern was disrupted and the mid- and low-level centers were becoming detached. Shortly thereafter, Lixion Avila of the National Hurricane Center remarked about the size of Paula, stating that, "a hurricane is crossing between the western tip of Cuba and eastern Yucatan...but without modern technology no one would know it was there". Drifting north-northeastward ahead of a mid-latitude trough, Paula weakened to a tropical storm at 1200 UTC