Guatemalan President Jimmy Morales has ordered to move the country's embassy in Israel to Jerusalem.
In a Facebook post, Morales said the decision was taken after he had spoken with Israel's PM Benjamin Netanyahu.
Last week, Guatemala was one of only seven nations to vote against a UN resolution urging America to reverse its recognition of Jerusalem as the capital of Israel.
Donald Trump threatened to cut aid to nations that voted against the US.
The US is an important aid donor to Guatemala, an impoverished Central American country.