You can't get a much better location than this. It's at the bottom of the Alhambra hill where the minibuses leave for the Albayzín and the Alhambra itself. The outdoor terrace offers great views of the surrounding historic buildings - Real Chancillería (High Court), Iglesia de San Gil y Santa Ana church and Alcazaba de la Alhambra fortress. The interior is decorated like a traditional old Castilian tavern. House specialities include an extensive menu of snack-size montaditos (canapés), larger raciones (bigger portions of tapas) and carnes a la piedra (succulent meats cooked on a ceramic hot plate).
Asador de Castilla is a long standing favorite located near the old town hall. Excelling in authentic Castilian asador which is barbecued treats, this place will always be a favorite for everyone who loves a good old barbecue. This is especially proved by the number of politicians, journalists and the various VIPs who frequent this place. Specialties here include homemade stews, roast lamb with herbs and refried beans with strips of Iberian ham. The decor here is pretty quirky and interesting, consisting of a solid stone facade, with medieval coats-of-arms and stone carvings around the place. For the best in BBQ, head to this earthy restaurant.
If you're looking for a drink and a bit of local colour during the bullfighting season, this typical Granada tavern is worth a visit. It is actually located within one of the outside walls of the bullring, or Plaza de Toros. The atmosphere is homely, the tapas are good quality and the décor is all to do with bulls and wine. The drinks are a bit pricey compared to other nearby places, but it does have a unique location.