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Declared a Site of Cultural Interest in the monument category in 1969, this church is where the famous playwright, Lope de Vega, is buried and it held the funeral service for Miguel de Cervantes. The church has two entrances: one on Calle de San Sebastián, which retains the old façade remodelled by Juan Antonio Cuervo in 1829, and another on Calle de Atocha.

The old St. Sebastian Church, which had been built between 1554 and 1578 by the master builder, Antonio Sillero, was restored by Juan Bautista Monegro and Teodoro Ardemans during the 18th century. This original church was destroyed by bombing in 1936 during the Civil War. The new construction was undertaken by Francisco Íñiguez Almech in 1943, who modified the orientation of the temple and left the former tower, one of the highest in Madrid, unfinished. In 1959, it was reopened to the public.  

Most of its chapels were financed during the 18th century by architects, comedians and other professional groups. The Chapel of Bethlehem otherwise known as the Chapel of Architects, designed by Ventura Rodríguez in 1784 stands out along with the Chapel of Actors, designed by Silvestre Pérez; or the Chapel of the Guards, according to Pedro Arnal’s project in 1793. The Main Chapel was built by Julián de Barcenilla between 1787 and 1788.