A mutation of the red version of Grenache, Grenache Blanc is believed to have originated in the province of Aragon in northern Spain. Plantings later spread throughout the rest of Spain, Europe and into the Mediterranean, including what is modern day Sardinia. After the phylloxera epidemic in the late 19th century, many vineyards in Rioja and France were replanted to Grenache, as well as some to Grenache Blanc.

Grenache Blanc is commonly used as a blender in the Old World. It is a major component in the white wines of the Châteauneuf-du-Pape and Côtes du Rhône AOCs, and is often blended with Roussanne, and even some red wines. In fact, up to 10% Grenache Blanc is permitted to be blended into the red wines of the Côtes du Rhône Villages AOC. Almost half of all Grenache Blanc plantings are in the Roussillon region; here it is blended with Roussanne, Marsanne, Viognier and Rolle. In Châteauneuf-du-Pape, Grenache Blanc is most often blended with Roussanne, Picpoul, and Clairette.

It is known as Garnacha Blanca in Spain, where it is widely planted in regions including Navarra, Terra Alta, Alella, Aragon, and the Priorat. It is legally permitted in the white wines of Rioja, but not widely used.