Located next to the Río Salar, which flows down from the Sierra de Alhama, Salar probably took its name from its local salt industry, as there used to be many salt evaporation ponds in western Granada, but it has disappeared today. Salar is surrounded by a beautiful natural environment, which can be enjoyed in many places, such as the Fuente Alta or the Cruz de Marino. At the edge of the municipality bordering with Loja is located the Cueva Monea, with its stalactites and stalagmites. Another cave is the Cueva del Bañuelo, which is a semi-thermal hot spring.
Archaeological remains belonging to the Neolithic period have been found in the area. Roman remains have also been discovered, such as the ruins of Gabino. It is believed that the village of Salar was created around the same time its medieval fortress was built. It was conquered by Hernán Pérez del Pulgar on 30th May 1486, during the siege of Loja against the Moors. In 1490 it fell into the hands of the Catholic Monarchs, who immediately appointed a local mayor that later took charge of repopulating the village. Salar belonged to the town of Loja until 1817. It took a stand against the French in the Peninsular War and participated in the peasant revolts in the 19th century.
Olive oil is widely produced and used in the local cuisine. It is an ingredient of the Olla de San Antón and used to make Hornazos, as well as the pastries called Borrachuelos. Local dishes also include game, especially hares and partridges.