The assassination of Francisco Pizarro occurred in a tense atmosphere of power struggles and factional rivalry in the early days of Spanish colonization in Peru. Pizarro, who co-founded Lima and led the Spanish conquest of the Inca Empire, had previously been a prominent figure in the brutal power dynamics that defined the interactions among Spanish explorers and conquistadors in South America. His eventual fall from grace was precipitated by both personal vendettas and grievances stemming from his leadership after the conquest. Among those aggrieved was Diego de Almagro the younger, the son of Pizarro's former companion, Diego de Almagro, an earlier adversary of Pizarro who had similarly sought to stake a claim in the riches of the Inca Empire.

The assassination took place when Almagro the younger led a surprise attack, taking advantage of Pizarro's weakened position. Reports suggest that Pizarro had become increasingly unpopular due to his harsh governance and the favoritism he displayed towards certain Spanish factions, which alienated others. The sociopolitical turmoil culminated in Almagro's decision to assassinate Pizarro in his own home, a deliberate act reflecting the intensely competitive and sometimes lethal nature of colonial ambitions among Spanish settlers. Following the assassination, Almagro’s actions had immediate consequences, as he was quickly captured and executed, engulfing Lima in further instability.

Pizarro's death marked a turning point in the social and political landscape of the time, as various factions vied for control amidst the growing chaos. This chain of events played a crucial role in shaping the governance of Spanish Peru in subsequent years, leading to a more organized but also contested colonial administration. The power vacuum left by Pizarro's assassination allowed other factions and figures to rise, further complicating the geopolitics of the region in the years to come.