In the 2004–05 season, coach Juan Ramón López Caro guided the team back to the Segunda División and the team subsequently revived the El Castilla name and became known as Real Madrid Castilla.
Di musim 2004-05, pelatih Juan Ramón López Caro berhasil mengantarkan kembali tim promosi ke Segunda División dan menghidupkan kembali nama Castilla dan mengubah nama tim menjadi Real Madrid Castilla.