The 30-year-old was a free agent after leaving Qatari side Al-Duhail and joins the Spanish second division club on a deal until the end of the season.
Having started his career at boyhood club Cadiz, the former Spain Under-21 international also enjoyed stints at Almeria, Genoa, Real Mallorca and Swansea before leaving Europe.
The experienced defender spent two years with the Swans, winning the League Cup in 2013.
Now has returned to football after a brief spell out, with Granada officially confirming the signing via their social media channels.