The Plaza Mayor has a history dating back to the 15th century, originally known as the "Plaza del Arrabal," and served as the primary market in the town. In 1561, the plaza was relocated to Madrid, and King Philip II hired the Classical architect Juan de Herrera to revamp the area. However, the construction was delayed until the reign of Philip III in 1617 when Juan Gómez de Mora took over the reconstruction and finished it in 1619. Over time, the Plaza Mayor suffered three significant fires, with the first one occurring in 1631, followed by fires in 1670 and 1790, respectively. Each time, a different architect was responsible for the plaza's reconstruction. Juan de Villanueva is credited with the current architecture of the Plaza Mayor, which he completed after the devastating 1790 fire. Before Villanueva's intervention, the buildings surrounding the square were five stories tall, but he reduced them to three stories, closed the corners, and created large entrances into the square. Construction continued after Villanueva's death and was completed by Antonio López Aguado and Custodio Moreno in 1854.
The Plaza Mayor is now a rectangular space that showcases a consistent architectural style. It spans an area of 129 meters by 94 meters (423 feet by 308 feet) and features three-story residential buildings with 237 balconies facing towards the Plaza. Visitors can access or leave the plaza through ten entrances, which are named 7 de Julio, Arco de Triunfo, and Felipe III to the north, Sal, Zaragoza, and Gerona to the east, Botoneras, Toledo, and Cuchilleros to the south, and Ciudad Rodrigo to the west. Despite having ten entrances, there are only nine gates.
In the center of the Plaza Mayor stands a statue of Philip III riding a horse, erected in 1848. Over the years, the plaza has hosted a variety of events, including bullfights, soccer games, and executions in the past. These days, the plaza is the site of the annual Christmas market and stamp and coin collecting markets on Sundays and holidays in the morning.
The Casa de la Panadería, located to the right of the plaza, was renovated by Joaquín María de la Vega in 1880. The building's façade is framed by two towers and has served different purposes throughout its history. It was originally the city's main bakery, hence the name. In 1921 and 1935, the farmhouse was reformed, and in the 1960s, the plaza prohibited road traffic and added underground parking. The last performance in the plaza, in 1992, was a mural painting by Carlos Franco of the Casa de la Panadería featuring mythological figures such as the goddess Cibeles.
Today, the Plaza Mayor is a popular tourist attraction and a cultural icon of Spain, cherished by both locals and visitors. Adjacent to the plaza, on Arco de Cuchilleros Street, is Restaurante Botin, the oldest restaurant in the world.
Over time, the name of the plaza has undergone several changes to reflect significant events, historical periods and reigns in Spanish history. The plaza was originally known as "Plaza del Arrabal", which was once the site of the most popular marketplace until the late 15th century. After the adoption of the Constitution of 1812, major plazas in Spain, including this one, were renamed "Plaza de la Constitución". This name was used from 1820 to 1823, 1833 to 1835, 1840 to 1843, and 1876 to 1922. When the Borbón king was reinstated in 1814, the plaza became known as "Plaza Real". It was later renamed "Plaza de la República" in 1873. Finally, after the Spanish Civil War, the plaza was given its current name of "Plaza Mayor".
The Plaza Mayor features a bronze sculpture of King Philip III at its core, crafted by Jean Boulogne and Pietro Tacca in 1616. Although Giambologna's equestrian statue of Philip III also dates back to 1616, it wasn't relocated to the center of the square until 1848. The Duke of Florence bestowed the statue as a gift to the city during that era. Queen Isabel II subsequently instructed for its transfer from Casa de Campo to the Plaza Mayor, where it became the focal point.