During the Reconquista, Estremoz was captured in the 12th century by the army of knight Geraldo Sem Pavor (Gerald the Fearless), who had also conquered neighbouring Évora.

An important strategic site between the Kingdoms of Portugal and Castile, Estremoz received a charter (fuero) in 1258 from Afonso III after the Moors were driven out a second time, which promoted Christian colonization in the area.

During the 1383–1385 Crisis, Nuno Álvares Pereira established his headquarters in Estremoz, then defeated the Castilian forces at the Battle of Atoleiros.

Administratively, the municipality is divided into 9 civil parishes (freguesias):[4] Together with the two other marble towns, Borba and Vila Viçosa, Estremoz is internationally known for its fine to medium marble that occurs in several colours: white, cream, pink, grey or black and streaks with any combination of these colours.

The Estremoz marble has been designated by the International Union of Geological Sciences as a Global Heritage Stone Resource.