Hondo was founded in 1969 when Jerry Freed and Tommy Moore of the International Music Corporation (IMC) of Fort Worth, Texas, entered a joint venture with Korean manufacturer Samick. The brand's mission was to apply modern manufacturing techniques to produce organized, affordable instruments for the entry-level market. Early production focused on classical and steel-string acoustic guitars, with electric models following in 1972. By 1975, Hondo had distributors in 70 countries, and in 1979 alone over 790,000 instruments were sold worldwide. The lineup eventually spanned acoustic guitars, electric guitars, basses, banjos, and mandolins, encompassing hundreds of models at its peak.

Hondo is particularly noted for being one of the first overseas guitar manufacturers to equip import instruments with American-made DiMarzio pickups, beginning in 1978. Their electric designs drew heavily from classic American archetypes—Stratocaster- and Les Paul-style body shapes—making the instruments accessible to players who wanted familiar feel at student-friendly prices. A higher-tier Professional Series was manufactured in Japan, while the bulk of production remained in Korea with Samick. Guitarist Paul Dean of Loverboy endorsed the brand and had a signature model, the Paul Dean II, produced through the brand's peak years.

IMC shifted focus to the Charvel/Jackson line in the mid-1980s, and the Hondo trademark went dormant around 1989. Freed reacquired the rights in 1991 and relaunched the brand with production sourced from India, China, and Taiwan. MBT International (later Musicorp) purchased Hondo in 1995 and maintained it as a budget-friendly student brand until phasing it out in 2005 in favor of the J.B. Player name. Hondo guitars remain a fixture of the vintage and used market, appreciated by collectors for their role in opening up affordable guitar manufacturing.

Hondo has 32 products cataloged on Equipboard, including Solid Body Electric Guitars, Electric Basses, and Semi-Hollowbody Electric Guitars. Their gear is featured by 14 artists, with the strongest followings in Rock, Electronic, and Pop. Notable users include Adam Horovitz (Ad-Rock), Kurt Cobain, and Peter Hook.