After the Christian conquest of Alcántara in 1213, the city was given to the military Order of Calatrava four years later.
The order's main architect, Pedro de Ybarra, worked on the design.
In 1706, it was sacked during the War of Spanish Succession, and it was damaged by the 1755 Lisbon earthquake.
The exterior's main feature are the three apses (the central polygonal and the side ones semicircular), characterized by large coat of arms.
Opposite a three-storey loggia with Renaissance arches, a semicircular auditorium has been built; the classical theatre festival of Alcantara is held here in the summer.