He was born around 1390 in Cañete and died on 2 June 1453 by decapitation in the Plaza Mayor in Valladolid. He was an influential nobleman at the court of King Juan II de Castilla and rose to prominence in part through the support he gave the king in the struggle against the so‑called Infantes of Aragon.

Álvaro was introduced to the court in 1408 by his uncle Pedro de la Luna, Bishop of Toledo and later Pope Benedict XIII. He quickly established his influence over Juan de Castilla, who was still a child at the time. Castile was then governed by Fernando, Juan’s uncle, who assumed the regency over him after the death of his brother Enrique III. Juan’s mother, Catalina de Lancaster, was so concerned about Álvaro’s influence that she tried to banish him from the court, but without success. During Fernando’s regency, which ended in 1412, he was unable to advance any further. But when Fernando was chosen as king of Aragon after the Compromise of Caspe, his attention shifted largely toward Aragon. Álvaro knew how to manoeuvre in order to obtain an important position at court and to become a favourite of the young Juan.

Through a conspiracy by a group of nobles, Álvaro de Luna was removed from the royal council and sent away in 1427, but he was allowed to return the following year. In 1431 he did his best to assemble an expedition directed against the Moors. They still occupied Granada. There were some successes during the battle of Higueruela, but in the end the expedition failed.

In 1445, a new conspiracy arose against Álvaro de Luna, led by a group of noblemen who received support from the Infantes de Aragón. They gathered an army, which was defeated in the First Battle of Olmedo. After the victory, Álvaro de Luna was appointed Grand Master of the Orden de Santiago. The king remarried in 1447 to Isabel de Portugal. The new queen quickly put an end to the influence of the powerful nobles at court. Álvaro was arrested and sentenced to death. His decapitation took place 2 June 1453 on the Plaza Mayor in Valladolid