The chapel houses an image of Santiago Apóstol, the Patron Saint of Posadas, a statue that replaced the original one destroyed during the Spanish Civil War. The current statue depicts Santiago mounted on a white horse, evoking his legendary appearance at the Battle of Clavijo.
Situated on a small hill once known as "El Cerrillo" along the old royal road from Córdoba to Seville, the chapel lies amid several sites of religious significance. To the north was the now-lost Hermitage of Bella Rosa; to the south, the parish church; to the west, the Hermitage of Jesús; and to the east, the also vanished Hermitage of Virgen Coronada. This network of sacred locations positions the Chapel of Santiago as a spiritual focal point within Posadas.
Likely built in the 16th century, the chapel appears in early documents, such as the 1511 will of Juan Álvarez, who bequeathed a donation to "Santiago de las Posadas." The present-day appearance of the chapel is owed to renovations in 1793 under the direction of master builder Juan Rafael Jerez. Inside, the single nave is divided into two sections, with the first featuring a barrel vault with lunettes and the second crowned by a dome in the crossing, creating a harmonious and solemn aesthetic.
Every July, the chapel becomes the heart of local festivities for Santiago’s feast day, rekindling traditions that tie the community of Posadas to its history and faith. Santiago has been honored as the Patron of Posadas for centuries, though the exact date of his designation remains unknown