The newly founded settlement grew quickly, prompting Vasco de Quiroga to go to Spain and procure for rival settlement Pátzcuaro the title of city and a seal, to prevent “new city” from becoming the capital of Michoacán. What would become the city of Morelia was founded by Viceroy Antonio de Mendoza and a number of encomenderos in 1541, who first named it Nueva Ciudad de Michoacán (New City of Michoacán). In the 1530s, the area was evangelized by Franciscans such as Juan de San Miguel and Antonio de Lisboa. The Spanish pushed into the Guayangareo Valley between 15, headed by Gonzalo Gómez. The main Matlatzinca settlement was where Júarez Plaza in the city is today. Between the 12th and the 15th century, Matlatzincas moved into the area with permission of the Purépechas, who were based around nearby Pátzcuaro Lake. They dominated it politically for the rest of the pre-Hispanic period but did not build any major settlements here. In the 12th century, the Purépecha arrived in the valley. Artifacts found here have shown Teotihuacán culture influence on early cultures in this area.

Human settlements in the Guayangareo Valley in which Morelia is located have been dated back as far as the 7th century. The municipality had 849,053 inhabitants, and the Metropolitan Area, composed by Morelia, Tarímbaro, and Charo municipalities had 988,704 inhabitants, according to the XIV Census. The city population in 2020 was 743,275 inhabitants. It is tradition to name people born on September 30th after the city. In 1991, the city was declared a UNESCO World Heritage Site for its well-preserved historical buildings and layout of the historic center. After the Mexican War of Independence, the city was renamed Morelia in honor of José María Morelos, who hailed from the city. In 1580, this rivalry ended in Valladolid's favor and it became the capital of the viceregal province. The Spanish under Viceroy Antonio de Mendoza founded a settlement here in 1541 with the name of Valladolid, which became rival to the nearby city of Pátzcuaro for dominance in Michoacán. The Spanish took control of the area in the 1520s. The main pre-Hispanic cultures here were the Purépecha and the Matlatzinca, but no major cities were founded in the valley during this time.

The city is in the Guayangareo Valley and is the capital and largest city of the state. Morelia ( Spanish pronunciation: from 1545 to 1828 known as Valladolid) is a city and municipal seat of the municipality of Morelia in the north-central part of the state of Michoacán in central Mexico.

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