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Located on the far side of the moon, Granada is one of the largest lunar cities, second only to Von Braun. Due to Granada's proximity to the Zeon homeland of Side 3, the Earth Federation Space Force establishes a base here prior to the One Year War, but when hostilities commence the base is swiftly overrun by the Principality of Zeon. For the duration of the war, Granada serves as the headquarters of Kycilia Zabi's Mobile Assault Force. On January 1, U.C. 0080, it hosts the final peace negotiations between the Earth Federation and the restored Republic of Zeon. After the One Year War, Granada once again becomes a Federation base. However, its citizens remain strongly anti-Federation, and once the Gryps Conflict begins the city openly sides with the AEUG resistance group. Due to the presence of Flanagan Institute during One Year War, most of psycommu and psycoframe related weapons are developed in this city, under the supervision of Anaheim Electronics (AE). During the U.C. 0090s, AE's Granada plant manufactured almost all of the second Neo Zeon movement's operational mobile suits, including the Geara Doga and the Sazabi.

In the Correct Century, the former site of Granada has been replaced with the city of Genganam, built by the ancestors of Gym Ghingham. It is now the capital of the Moon.

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