Álvarez played at the 1999 World Youth Cup and made his senior debut for Honduras in a 2001 UNCAF Nations Cup match against Panama, coming on as a second-half substitute for Mauricio Sabillón. As of July 2012, has earned 51 caps, scoring 3 goals. He has represented his country in 10 FIFA World Cup qualification matches and played at the 2001 and 2003 UNCAF Nations Cups as well as at the 2003 and 2007 CONCACAF Gold Cups. But most importantly, he was part of the 2010 FIFA World Cup squad and played in two matches.