A market outside the walls
Before it was a square it was the Plaza del Arrabal, a busy market where the roads from Toledo and Atocha met, just outside the medieval town.
Finished in 1619 on the site of an old market outside the walls, the Plaza Mayor has hosted markets, bullfights, royal ceremonies and three great fires. The square you see is largely Juan de Villanueva's rebuild after 1790.

Before it was a square it was the Plaza del Arrabal, a busy market where the roads from Toledo and Atocha met, just outside the medieval town.
The square burned three times. After the worst fire, in 1790, Juan de Villanueva lowered the buildings from five storeys to three and opened the big arches at the corners.
The Casa de la Panadería, the bakery house, was the first building of the new square, begun in 1590. Its murals of mythological figures were painted in 1992 by Carlos Franco.
It was completed in 1619, but much of what you see is the rebuilding after the fire of 1790.
King Philip III on horseback, made in 1616 by Giambologna and Pietro Tacca. It was placed in the square in 1848.
Markets, bullfights, royal proclamations, festivals and public ceremonies, for four centuries.