You can not specify the time of its founding, but its name is clearly Arabic root. On the basde of an earlier castle, in the late fourteenth century or early fifteenth, a castle palace was built by Pedro Lopez de Ayala. Around him, he was gathering the population forming a village and therefore the origin of the town.
In 1555, the third Earl of Fuensalida lord of the castle and town, granted testament whereby his subjects left Guadamur the lands they cultivated on condition of paying a small census.
Near the villa is a place known ocmo Guarrazar, where it was discovered the famous Treasury Guarrazar.