A dictatorship that dissolves itself. The democratic transition (Transición) in Spain seemed like a little miracle to many contemporaries. The interplay between the regime's reformist forces and the democratic opposition made the transition possible, but it was by no means entirely peaceful.

On November 20, 1975, Prime Minister Carlos Arias Navarro tearfully announced Franco's death to the Spanish television audience. Two days later, Juan Carlos, a grandson of Alfonso XIII whom Franco had personally chosen as his successor in 1969, was proclaimed king. Contrary to all expectations, the young monarch strove for a rapid democratization of the country. In sharp contrast to Franco's regime of the victors, he announced in his inaugural speech: "The institution I embody unites all Spaniards." Initially, the most important practical measure was the appointment of Adolfo Suárez, the reform-minded Secretary General of the state party, as prime minister. In consultation with Parliament Speaker Torcuato Fernández-Miranda and other like-minded reformists, a political reform law was drafted to establish a pluralist democracy. In November 1976, the law passed the Francoist parliament, and a month later it received an overwhelming 97.4% approval in a referendum.

At the beginning of the following year, political parties – including the communist PCE – were successively legalized, with the first free elections in 40 years taking place in June 1977. Adolfo Suárez was confirmed in the office of prime minister, now as head of the liberal-conservative UCD. The reform process accelerated from this point onward. In October 1977, a general amnesty freed all political prisoners of the Franco regime. At the same time, it protected public servants from any criminal prosecution – a pact of silence and oblivion. On December 6, 1978, a new constitution came into force, drafted with the cooperation of the parties represented in Parliament and modeled in large part on the “Basic Law” of the Federal Republic of Germany. Furthermore, in Catalonia and the Basque Country statutes of autonomy were adopted by referendum in 1979. At the same time, the years 1979–1981 were marked by severe crises. Spain's economic problems, latent since the oil crisis, led to high unemployment. The Basque Country was simultaneously shaken by attacks perpetrated by the terror group ETA.

Founded in 1959, this socialist and separatist organization became increasingly radicalized in the late 1960s. In the struggle against the authoritarian Franco state and for the freedom of the Basque Country, attacks were carried out against state law enforcement agencies and "collaborators." This practice continued after Franco's death and reached its bloody climax in 1980 with 93 casualties. On February 23, 1981, Suárez resigned from the office of prime minister. During the election of his successor, Leopoldo Calvo-Sotelo, a momentous incident occurred in Parliament. Lieutenant-Colonel Antonio Tejero and 300 Guardia Civil soldiers occupied the parliament building and took the deputies hostage. At the same time, tanks were deployed in Valencia. The military coup failed due to the indecisiveness of the generals and a televised speech by Juan Carlos in which the monarch withdrew his confidence from the military. The failed coup and the assumption of power by the socialist PSOE, which emerged victorious from the 1982 elections, marked the end points of the democratic transition (Transición).