The draw with Sevilla on Sunday saw Zinedine Zidane's side miss an opportunity to take the title initiative as Barcelona and Atletico Madrid shared the spoils on the previous day.
But tonight's emphatic victory sends an ominous message that they're in the race too and not giving up anytime soon. Los Blancos hit all the right notes in Los Carmenes.
Here are the player ratings for Real Madrid:
Thibaut Courtois - 8/10
The Real Madrid custodian was a busy man and held firm when Granada came firing at him. The highlight of his game was certainly the reflex save in the dying minutes to deny Domingos Quina - absolutely world-class stuff from the Belgian.
Marvin Park - 7/10
A resounding game for the 20-year-old who consistently provided an outlet down the right with his tireless runs. He played a part in Real Madrid's second goal too, winning back possession with a sweet tackle and then setting up Rodrygo. He was taken off at half-time with a possible injury and Zidane will hope nothing's serious.
Eder Militao - 7/10
The Brazilian was accurate with his passes and showed good positional sense overall, but was wrongfooted in the build-up to Molina's strike. Three clearances and two tackles to his credit too.
Nacho - 7/10
Nacho was rock solid in defense and made six interceptions and one clearance on the night, which almost turned sour with a poor backpass at the end, though Courtois was on hand to clear the danger.
Miguel Gutierrez - 7.5/10
The youngster linked up brilliantly with the Real Madrid attackers and also provided an assist for Modric's opener with a delightful chip. His defensive aspect of the game needs to improve though.
Federico Valverde - 7/10
Valverde worked very hard to make things happen whilst also taking up the mantle for Real Madrid with four key passes. He carried the ball forward regularly and laid some excellent throughballs too.
Casemiro - 7/10
The Brazilian provided excellent cover for Real Madrid's back four and constantly attempted to block Granada's forward movements.
Luka Modric - 8/10
He kicked things off with a rare goal and didn't look back thereafter, distributing the ball effectively and making three key passes too.
Rodrygo - 7/10
It had been a long time coming and it finally arrived - Rodrygo scored his first La Liga goal of the season with a simple but confident finish and was generally looking bright.
Karim Benzema - 7.5/10
His perfectly placed header in the first-half was saved brilliantly by Rui Silva but didn't really threaten Granada thereafter, but pounced on a mistake from their goalkeeper after the break, firing home into an empty net from range. Redemption.
Vinicus Junior - 6/10
He looked dangerous in possession, knitting passes together and running straight at Granada's defense. But again, his end-product was lacking.
Alvaro Odriozola - 7/10
An excellent cameo from Odriozola, who kept everything sorted at the back and even had time to surge forward and score a beautiful goal.
Eden Hazard - 6/10
The Belgian quickly recovered from a poor first touch with a neat pullback to set up Odriozola for Real Madrid's third goal.
Marco Asensio - 6/10
He rarely got a whiff of the ball but saw one half-chance bounce off the roof of the net.
Isco - 6/10
Isco's first touches were heavy and even almost cost his side late on by allowing Suarez to steal possession and lift a shot inside the box.
Mariano Diaz - N/A
He was the last substitute for Real Madrid but saw very little of the ball.