During the Spanish Civil War, the Nationalist Colonel José Moscardó Ituarte held the Alcázar against overwhelming Republican forces in the Siege of the Alcázar. The incident became a central piece of Spanish Nationalist lore, especially the story of Moscardó's son Luis. The Republicans took 16-year-old Luis hostage and demanded that the Alcázar be surrendered or they would kill him. Luis told his father, "Surrender or they will shoot me." His father replied, "Then commend your soul to God, shout 'Viva Cristo Rey' and die like a hero." Moscardó refused to surrender and his son was executed.
By the end of the siege, the building had been severely damaged. After the war, it was rebuilt.
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