Pink Shack, in the southern half of town, sells T-shirts with their own quite clever designs, as well as a few other items such as flip-flops and Crocs.
Waves of Art (tel. 504/403-8819, 9 a.m.–6 p.m. Mon., Tues., and Sat., 9 a.m.–8 p.m. Wed.–Fri., www.waves-of-art.com ), located in a Victorian-style building across from the church, offers art and handicrafts that promote sustainable living among low-income Hondurans, including candles, carvings, note cards, and jewelry made by co-ops from across the country. The upstairs gallery features art in numerous media, including paintings, photos, sculptures, and metal works, and hosts new gallery showings every six weeks. Credit cards are accepted.
A number of Guatemalan artisans have made their way to the Bay Islands  to sell their fine handicrafts; Evelyn Gift Shop, next door to the Pura Vida Dive Shop, has a good selection of both Guatemalan and Honduran crafts.