The locality of El Caracolar in the Granada Basin (Central Betic Cordillera, southern Spain) has yielded a rich late Miocene assemblages composed of marine invertebrates and vertebrates, accompanied by microfossils, macroflora and trace fossils. Exposed strata consisting of sands, sandy siltstones, silty sandstones, siltstones and calcirudites are divided into four local units. Lithostratigraphically, the studied section is placed between the top of the La Peza Formation and the Quéntar Formation. Based on foraminifers, the age of units 2 and 3 is estimated to be early Tortonian (11.0–9.9 Ma), whereas units 1 and 4 do not yield any reliable biostratigraphic markers. The diverse biotic association suggests that deposition took place in a near-shore outer neritic zone of a narrow to open seaway in a mesotrophic regime, responsible for the establishment of a chemosynthetic community under (sub)tropical conditions. The palaeo-depth of the depositional setting is estimated between 70 and 130 m. We further focused on decapod crustaceans that represent the first formally reported fossil decapod assemblage from the Granada province. The faunule consists of eight genera from two assemblages representing different palaeoenvironments. The assemblage of units 1 and 4 is dominated by the ghost shrimp “Callianassa” cf. almerai and accompanied by the hermit crab Petrochirus, whereas the assemblage from unit 3 includes the ghost shrimp Ctenocheles and the brachyuran crabs Raninoides, Calappa, Goneplax, Styrioplax, and Typilobus. Unit 2 does not yield any identifiable decapod remains. Styrioplax sp. represents the first occurrence of the genus outside the Central Paratethys, substantially expanding its palaeogeographical distribution. The decapod faunule from El Caracolar shows affinities with assemblages from the Proto-Mediterranean and Paratethys. This study provides a lithostratigraphic and palaeoenvironmental framework for further palaeontological studies in this unique Western Mediterranean outcrop.