Toledo to Granada

Yes, you will need to take a train from Toledo back to Madrid ( Puerta de Atocha Station), in order to take the train to Granada.

If you plan to visit Córdoba or Sevilla on your trip, you could travel there on your way to Granada.

You may check train schedules here:http://www.renfe.com

There is only commuter train service to Toledo. Note that on weekends, there are no early morning trains. You'll need to allow ample time to get through Atocha station in Madrid, it is quite big and often crowded. The Toledo trains are at one end, the AVE trains to Granada are at the other end. And you'll have to go through security to board the AVE.

As Priscilla says, it may be more efficient to get to Toledo and or Granada from another place on your itinerary. When I went to Toledo for 2 nights, I put my suitcase in a storage locker in Madrid and only took a small overnight bag to Toledo. It was worth the extra time to get to the lockers (which are about a 5-minute walk from the AVE trains) to not have a big bag in very hilly Toledo.

'suggestions' - take the direct bus perhaps if your travel day is Sunday - www.alsa.es

Madrid-Toledo is a spur line that dead-ends in Toledo. Trains on this line make no other stops. Although the distance is short, trains run frequently, and the route is popular with commuters, this is not an unreserved regional train. Tickets are sold for reserved dates, times, and seat assignments (as is true for most Spanish train routes). Therefore, it's possible for a departure or a class of service to sell out.

I would say it's probable, not just possible, that tickets will sell out. I thought I'd have no trouble returning to Madrid mid-afternoon in February, and the train was sold out when I got to the station. Fortunately I was able to get a ticket for the next train and only had to wait an hour.

Buy tickets when you finalize your plans, no point to waiting.

The ride from Toledo back to Madrid is really short. Logically it seems like you're backtracking by going in the other direction, but taking the train back to Madrid then to Granada probably saves you time in the long run (versus a bus).

We did that a few years ago and it was very easy. Madrid to Toledo to Madrid to Granada.

Taking the train allows you to store your bags in a locker at Atocha and go to Toledo with a small overnight bag.

And do allow enough time to get through Atocha. You may have to traverse this huge station from end to end to get to the Granada train, and there will be a security check before boarding. Spanish trains close their doors 2 minutes before departure and if you aren't on the train, wave goodbye.

Chani is right about Atocha. I regularly travel through the nightmare that is Pennsylvania Station in New York City and so have learned how to navigate it, and even I found Atocha confusing.

One thing I learned that may help you: Trains depart from two different levels at Atocha. If you arrive at one level and depart from the other when making a connection, and you don't need to enter the station itself (say, to retrieve a stored bag), you can take an elevator between the two departure areas. This saves going through the security check, prevents you from getting lost, and saves lots of time. The elevator is near the high number tracks - just ask, as it may not be obvious.