Founded on 6 March 1902 as Madrid Football Club, the club has traditionally worn a white home kit since inception.

The club's record goalscorer is Portuguese forward Cristiano Ronaldo, who scored 450 goals in all competitions from 2009 to 2018. One of the most marketable and famous athletes in the world, Ronaldo was ranked the world's highest-paid athlete by Forbes in 2016 and 2017 and the world's most famous athlete by ESPN from 2016 to 2019. Time included him on their list of the 100 most influential people in the world in 2014. He is the first footballer and the third sportsman to earn $1 billion in their career.

The honorific title real is Spanish for "royal" and was bestowed to the club by King Alfonso XIII in 1920 together with the royal crown in the emblem.

On 18 April 1905, three years after its foundation, Madrid FC claimed the club's first Spanish Cup crown, with the Whites defeating Athletic Bilbao 1-0 in the final. The tournament was played in Madrid and Manuel Prast struck the winning goal. This triumph marked the beginning of a period of madridista dominance in the Spanish Cup, with the club winning four editions on the spin.

The fastest goal in the history of the club (14 seconds) was scored by the Brazilian Ronaldo on 3 December 2003 during a league match against Atlético Madrid.

The team has played its home matches in the 81,044-capacity Santiago Bernabéu Stadium in downtown Madrid since 1947. Named after footballer and former Real Madrid president Santiago Bernabéu, the stadium has hosted the final of the European Cup/UEFA Champions League on four occasions: in 1957, 1969, 1980, 2010.

There is often a fierce rivalry between the two strongest teams in a national league, and this is particularly the case in La Liga, where the game between Real Madrid and Barcelona is known as "The Classic" (El Clásico). From the start of national competitions, the clubs were seen as representatives of two rival regions in Spain, Catalonia and Castile, as well as of the two cities. The rivalry reflects what many regard as the political and cultural tensions felt between Catalans and the Castilians, seen by one author as a re-enactment of the Spanish Civil War. Over the years, the record for Real Madrid and Barcelona is 97 victories for Madrid, 96 victories for Barcelona, and 51 draws.

La Fábrica ("The Factory") is the name given to Real Madrid's farm system and academy. Considered one of the best player development centres in the world, La Fábrica has produced a number of players that have contributed to Real Madrid's sustained sporting success since its inception.

While Beckham may have been the biggest star in world soccer when he signed for Real Madrid in 2003, No. 7 was already worn by club captain Raúl, a Blancos icon. Unable to continue wearing No. 7--a number he was building the 'DB7' brand around--Beckham chose the No. 23, inspired by Michael Jordan, who wore that number for the Chicago Bulls.

The club knew they had something special when 17-year-old Raúl scored 16 goals in just nine games (including five in one match against CD Corralejo). He was swiftly promoted to the first team by coach Jorge Valdano, replacing club legend Emilio Butragueño in a symbolic "passing of the crown."