town, south-central Segovia provincia (province), in southern Castile-León comunidad autónoma (autonomous community), central Spain. The town is surrounded by a dense forest and lies at the foot of the Peñalara Mountains, just southeast of Segovia city. Founded (c. 1450) by Henry IV as a summer retreat, the town was given to the Hieronymite monks in 1477 by the Roman Catholic monarchs Ferdinand and Isabella. It was subsequently sold by them in 1720 to Philip V, the first Bourbon king of Spain, who planned to build a summer palace there that would rival those at Versailles, France, and Parma, Italy.

The palace's original design, by a Spanish artist, Teodoro Ardemans, was in the simple and austere style of the 16th-century architect Juan de Herrera, but this was modified by French and Italian architects, notably Filippo Juvarra and Giovanni Battista Sacchetti. The palace chapel, with a fine dome and two towers, has frescoes by Francisco Bayeu y Subias and contains the tomb of Philip V and his wife, Isabella Farnese. The gardens, laid out by the French landscape architect Etienne Boutelou, have numerous fountains. The royal apartments contain a splendid collection of tapestries, some Flemish and some with designs taken from works by Francisco Goya. The palace was damaged by fire in 1918 but still retains its interest for tourists.

A royal glass factory was established in La Granja in 1728. La Granja was the scene of many important events in Spanish history, including Philip V's abdication (1724), the signing of various treaties (notably in 1796, whereby Spain was tied to the French Republic), and the promulgation by Ferdinand VII of the Pragmatic Sanction (Pragmatic Sanction of King Ferdinand VII) (1830), revoking the Salic Law (code of the Salian Franks), which prohibited female heirs from succeeding to the throne. Pop. (2007 est.) mun., 5,506.