Palacio Real (Royal Palace) - The Palacio Real is one of the most beautiful in Europe. An immense 18th century palace (twice the size of Buckingham Palace), it's the epitome of regal excess, with ornate walls, ceilings and floors, magnificent furniture and paintings. Kids will love the story-book tapestries and Royal Armoury with its collection of ornamental armor and weapons. You'll see only a section of nearly 3,000 rooms since much of the Palace is "off-limits," although these days the King and Queen use the Palace just for state occasions (check the schedule, when the King and Queen are in town, the Royal Palace is closed to visitors).

Plaza de Oriente - Across from the Palacio Real is the Plaza de Oriente. This is our favorite plaza in Madrid, a lovely wide open space with white statues of ancient kings and queens, small topiary garden and fountain, and a dramatic equestrian statue (designed by Velazquez) in the center. There's also a very nice playground with climbing structures and swings. Surrounding the square are several nice cafes, so you can join local families relaxing and having a snack.

Old Arab Wall (Parque Emir Mohamed I)- Just south of the Palacio Real and the cathedral, on Cuesta de la Vega, you can see bits of the old arab walls. These walls were built in the 9th century by the Moorish rulers of Madrid - they built a fort on the hill here - later additions are 12th century. There's only a little bit of wall to see, some brickwork arches, and nothing is labeled, but it's pretty cool anyway.

Take a stroll - In the late afternoon, or early evening, stroll down the wide promenade in front of the Palacio Real (Calle de Balien), filled with Madrilenos, who love to be "in the street" at twilight. For a longer walk, at the Plaza de Oriente, walk past the Teatro Real to Plaza Isabel. Pick up the pedestrian street, Calle de Arenal, and continue walking to Puerta del Sol.