Along the main streets and squares of any Spanishcity you will find lots of colourful souvenir shops. The mixture of authentic goods and no so authentic items can be confusing. To choose an original and interesting gift read these ideas below.You may also help to support local companies and smaller businesses with your purchase.
Twelve Tips for souvenirs to buy in Granada, Spain.
Herbal Teas, local tea blends and fruit infusions are easy to find. This is an inexpensive gift and doesn’t weigh heavy in your suitcase. Moroccan mint tea is popular in Granada due to the tea shops near to Plaza Nueva. Another typical infusion made from local Orange blossom. Known in Spanish as Flores de Azahar it has calming properties.
Where to purchase? Find Specialist tea shops on Reyes Catolicos or San Anton close to Alhamar or the tea shops on Caldereria Nueva.
Local Olive oil
Good quality oil makes a useful gift for you or a friend. The best oil is from neighbouring provinces of Jaen or from Priego de Cordoba and Jaen.
Where to purchase? Look in any supermarket or delicatessen while in Granada. Most will be happy to wrap your purchase well to avoid breakage.
Chocolate, Biscuits and Cakes.
In Granada, the Abuela Ili has a few shops in the city. This local business sells artisan chocolate, made in their Alpujarra factory. The chocolate producer in Pampaneira bases their flavours are based on local produce. The selection includes raspberries, mango or almonds. If you aren´t a chocoholic there are plenty of biscuits &local pastries which can only be found in Granada province. Each village has its own speciality and some things are only on sale at certain times of the year. Certain items are only baked at Easter, fiesta time or Christmas. Pestiños and Roscos are very typical.
Where to purchase? Find a bakery such as Tahoma de los Galindos on San Anton or one of the many Pastelerias around town. 
Granada wine
Spain has an excellent selection of wines. Red, white, sweet wines and sparkling varieties.Andalusia also has some great bodegas. Local producers such as Pago de Almares and Señorio de Nevada have both won awards recently. Mencal and Calvente both white wines are recommended too.
Where to purchase? Buy in the supermarket or you may see the selection in the airport on your way home.
Spanish hamis known as Jamon Serrano or Jamon Iberico. Ask for it to be packaged for you to take it with you. As it is vacuum packed there is no need to chilled. Local cheese or other gourmet products may also be great items to enjoy when back home.
Where to purchase? Mariscal delicatessen sells quality produce; also see the selection at the small grocers shop on San Anton next to the church in Granada city centre.
Colourful Scarves & Fans.If you prefer a longer lasting gift, Andalusia has a lot of craft and art to choose from. Beautifully embroidered scarves come in lots of colours. They will always remind you of time spent in Andalusia. Especially if you see CorpusChristi Fair or the Crosses of May. Prices vary hugely depending on the material and level of embroidery. Some mantones are real works are art.
Spanish Fans. There are lots of sizes and shapes to choose from. Abanicos are inexpensive gifts. From just 3 euros. The hand painted fans or ones made from shell or fine lace are more costly due to the high quality of workmanship.
Where to purchase? The shop next close to Bib Rambla has a large selection on Calle Salamanca of both fans and shawls. 
You can still find baskets and wickerwork which has been made in Granada. These are made from local craftsman often from local materials too. Jarapas from the Alpujarra region are beautiful colourful rugs. No two are the same. Another idea are Spanish tablecloths. They often have detailed embroidery and make a unique way to take Spain into your home.
Where to purchase? Jarapa rugs in Pampaneira or Lanjaron. Baskets can be found in Lanjaron and in Granada at Esparteria just down from Granada Cathedral. For Tablecloths try Linde on Puentezuelas 2.
The Libreria de la Alhambra -Alhambra bookshop have some great gift ideas. The Toy Lions are cuddly toys imitating the lions of the fountina in the Nazrid palace are perfect for children. They also have alot of books in different languages.Books covering the history of Granada, about the story of the Alhambra and even children’s books too. Something that caught my eye was an oil with the scent of the myrtle plants in the Alhambra palace with room diffusors.
Where to purchase? This shop is in Plaza Nueva and also inside the Carlos V palace at the Ahambra)
Beauty treatments made from local produce. In Andalusia you will find creams and soaps made from local Honey or Olive oil. These are natural ingredients produced around the province. Often you support small farms or producers with your purchase. Donkey milk Soap is made in Sierra Nevada Granada. This Donkey reserve protects the Andalusian breed of Donkey which is on the brink of extinction.
Where to purchase? Look out for these items in souvenirs shops and museums around Granada province. 
Spanish pottery is colourful and usually made traditionally. You can buy small items such as egg cups or small bowls for just a few euros. Or splash out on statement pieces such as pitchers, vases or bowls. In Granada the typical pottery is blue and green. It is called Fajalauza. The tradition dates back to 11th Century when the Ziri Dynasty arrived to the region. Another typical craft is Marquetry. These pieces are made by inlaying wood with small mosaic pieces of different woods, shell and bone. The marquetry boxes are decorative and useful to put keys and small items in. In Spanish this is known as Taracea.
Where to purchase? Local pottery in Plaza de la Pescaderia. Taracea can be bought direct from one of the workshops. Artesania del Arbol (opposite Alhambra Palace hotel) or at the Valvidieso shop on Cuesta de Gomerez.
What not to buy?
Mexican sombreros nor Australian boomerangs. Strangely both items can be seen in some shops around Granada, but do not have anything to do with Spain.