This paper deal firstly with vary important issue in Islamic heritage, which was neglected by western scholars, I mean the tradition of Moriscos, and it also shades light on problem of Moriscos people and there suffering under Spanish rule. Secondly it tacks with the life and the work of once of the most prominent Spanish orientalist Angel Palencia whose books and important works made him one of leading figures in Spanish Orientalism. In addition to that paper studies Palancias method in analyzing and explaining Moriscoss poetry and tales. Lastly the paper concentrates on importance of Spanish Orientalism in concerning with the Islamic culture, religion and history.