He was born in Naples as the son of Pedro Álvarez de Toledo, 5th Marquis of Villafranca, then commander in chief of the Spanish Army in the Kingdom of Naples, and Doña Elvira de Mendoza. He served in the Spanish fleet under command of his father and rose quickly through the ranks, as did his elder brother García Álvarez de Toledo, 6th Marquis of Villafranca. In 1617, he became Capitán General de la Armada del Mar Océano or Armada de Barlovento. For all of his victories he was awarded the title of Marques de Villanueva y Valdueza on January 17, 1634. .