Returning to Corredera street, a little further along and to our right, we find the Iglesia de la Encarnación run by the Jesuits since 1944. The Jesuit foundation here was founded by San Francisco Borja in 1552 and opened in 1558. A school was started where they taught grammar and Latin. The teaching was free and it was supported by the incomes of donations from the graduate Andrés de Casas Rubias and goods that the Marques of Priego owned in Montilla.

To substitute the old church, built in the sixteenth century with one nave parallel to the main street, the decision was taken in the eighteenth century to build a bigger church, one which could hold the faithful and scholars. Its construction began in 1726. The works were unfinished with the expulsion of the Jesuits by Carlos III in 1767. Later, in 1794, these installations were occupied by the Franciscans when they left their old Monastery of San Lorenzo, of which only the front of the main entrance remains in a somewhat decayed state.

The Franciscans continued with the construction of the church which were also paralysed with the secularisation of 1835. The temple was finished in 1944. Subsequently, around 1970, the first church was demolished, having no real architectural value, and from which were removed sculptures, altarpieces, paintings and the remains of several generations of the Marquises of Priego and the Marquises of San Juan de Avila.

The Iglesia de la Encarnación maintains important statutes and paintings, one of them by Valdés Leal.