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The earthquake occurred shortly after 1:00 am, with its epicentre in the town of Alhendín, about 10 kilometres south of Granada, according to the National Geographical Institute (IGN).
Granada Mayor Marifrán Carazo said no casualties or serious, widespread structural damage had been reported, although authorities were assessing isolated damage, particularly in vulnerable buildings.
Andalusian emergency services received more than 200 calls from across the region, including Seville, Córdoba and the Costa del Sol.
Authorities reported cracks in buildings and fallen ledges, rubble and sections of walls, while Spanish media showed images of debris scattered across streets and of cars with smashed windows.
Emergency services urged residents to remain calm and avoid façades, balconies, ledges and walls that could be at risk of collapse.
Small earthquakes are not uncommon in Andalusia, Spain's most populous region, but they rarely reach magnitude 5.