The history of Lima, the capital of Peru, began with its foundation by Francisco Pizarro on January 18, 1535. The city was established on the valley of the Rmac River in an area populated by the Ichma polity. It became the capital of the Viceroyalty of Peru and site of a Real Audiencia in 1543. In the 17th century, the city prospered as the center of an extensive trade network despite damage from earthquakes and the threat of pirates. However, prosperity came to an end in the 18th century due to an economic downturn and the Bourbon Reforms.

The population of Lima played an ambivalent role in the 18211824 Peruvian War of Independence; the city suffered exactions from Royalist and Patriot armies alike. After independence, Lima became the capital of the Republic of Peru. It enjoyed a short period of prosperity in the mid-19th century until the 18791883 War of the Pacific when it was looted and occupied by Chilean troops. After the war, the city went through a period of demographic expansion and urban renewal. Population growth accelerated in the 1940s spurred by immigration from the Andean regions of Peru. This gave rise to the proliferation of shanty towns as public services failed to keep up with the city expansion.

Francisco Pizarro González (; Spanish: [fɾanˈθisko piˈθaro]; c. 16 March 1478 – 26 June 1541) was a Spanish conquistador, best known for his expeditions that led to the Spanish conquest of Peru.

Born in Trujillo, Spain to a poor family, Pizarro chose to pursue fortune and adventure in the New World. He went to the Gulf of Urabá, and accompanied Vasco Núñez de Balboa in his crossing of the Isthmus of Panama, where they became the first Europeans to reach the Pacific Ocean. He served as mayor of the newly founded Panama City for a few years and undertook two failed expeditions to Peru. In 1529, Pizarro obtained permission from the Spanish crown to lead a campaign to conquer Peru and went on his third, and successful, expedition.

When local people who lived along the coast resisted this invasion, Pizarro moved inland and founded the first Spanish settlement in Peru, San Miguel de Piura. After a series of manoeuvres, Pizarro captured the Incan emperor Atahualpa at the Battle of Cajamarca in November 1532. A ransom for the emperor's release was demanded and Atahualpa filled a room with gold, but Pizarro charged him with various crimes and executed him in July 1533. The same year, Pizarro entered the Inca capital of Cuzco and completed his conquest of Peru. In January 1535, Pizarro founded the city of Lima.