The site of Madrid has been occupied since prehistoric times, as has been shown by numerous objects found during different excavations along the banks of the River Manzanares. Many of these objects (axes and small Palaeolithic objects, remains of animals that prove the existence of large mammals, Neolithic ceramics, etc.) can be seen at the National Archaeological Museum. Madrid's population was initially Iberian and later Roman, and is possibly the Mantua found in certain ancient references and the Roman Miacum from the "Antonine itinerary", although some historians dispute this.

However, Madrid as such does not achieve a mention in chronicles until the late tenth century, at which time there was already a fort or castle where the Royal Palace stands today. This fort was occupied by the Moors, who having named the River Manzanares al-Magrit ("source of water"), referred to the area as Mayrit (from which Magerit, then Madrid) and around which the borough of Madrid developed in the following centuries. Between several different warriors, the Moors kept rule until Madrid was finally conquered in 1085 by Alfonso VI in his advance towards Toledo. This king ordered the main mosque within the fort's walls to be "purified" and consecrated as a Catholic church under the guidance of the Virgin of the Almudena, the name deriving from a religious icon found near the "almud?quot; or wheat deposit. La Virgen de la Almudena later became Madrid's female patron saint.

In the year 1329, King Fernando V assembled The Court of Madrid for the first time.

A little later, due to the Reconquista, Moors and Jews formed a concentrated population in the area that still today carries the name of Morer? but in 1494 the "unbelievers" were expelled and the mosque and other indicative buildings disappeared.

Later, Madrid was taken by the followers of Enrique of Tastamara and ceded by Juan I to King Leon V of Armenia who was then dethroned by the Sultan of Babilonia. Having been destroyed by fire during the reign of Enrique II, the city was rebuilt by his grandson Enrique III, who reincorporated Madrid under the Crown of Castille and who also founded El Pardo, situated just outside the city.

Enrique VI gave Madrid the title of "Very Noble and Loyal" and celebrated here his magnificent wedding with Do??uana of Portugal. The death of the king caused the formation of two distinct bands within the Castille kingdom - the two sides disputing the succession of the throne. Isabel and her supporters overcame Do??uana's followers and the victorious "Catholic Kings" (Isabel and her husband Fernando) solemnly entered the city to reside in a mansion in the Plaza de la Paja owned by Don Pedro Lasso de la Vega.

During the war of Communities, the Borough of Madrid took sides with the "Comuneros", although this did not prevent Emperor Carlos V bestowing on the city the title of "Crowned and Imperial". As remnants of these times we can cite the Church of San Jer??o, the Church of del Paso and the Tower of Lujanes, this last in the Plaza de la Villa, opposite the Ayuntamiento or City Hall where Francis I of France was held prisoner after his defeat at Pravia in Italy.