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The first recorded contact between the Spanish and the Navajo was in 1583 near Mt Taylor. The Navajo name for the Spanish is Nakai, meaning "one who wanders around". The Spanish claimed but never really controlled the Navajo territory so there was not a lot of direct contact except in towns and Pueblos in what is now New Mexico.

The Spanish had a large demand for Native American slaves. Navajo were captured by the Spanish or by other tribes and sold in markets in Santa Fe. Slaves were sent as far south as the silver mines in Mexico. Navajo women were in demand as weavers as well. By the late 1700s it is estimated that 66% of all Navajo had some family member who was a slave.

The Navajo aided in the Pueblo Revolt of 1680 which killed 400 Spaniards. They gave shelter in 1692-3 to some of the Pueblo people when the Spanish returned. Quite a few Navajo clans come from this period of mixing.

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