The Europeans claimed a narrow victory on the final day, but the real platform for victory had been established over the opening two days.
It was the first time the Europeans had played on home soil outside the British Isles as Seve Ballesteros captained the team in his native Spain and the match also marked Tiger Woods' Ryder Cup debut.
Heavy storms on the opening day delayed play, but honours were eventually shared in the opening fourballs.
Europe claimed a slight advantage by the end of the first day, with the pairings of Jesper Parnevik and Per-Ulrik Johansson, and Nick Faldo and Lee Westwood winning their foursomes.
Faldo set a string of records at Valderrama, with the most Ryder Cup points and appearances now to his name.
Ballesteros courted controversy with his early selections as Ian Woosnam and Darren Clarke were both deemed surplus to requirements on day one, as was Johansson the following day.
However, no one could dispute the captain's decisions as Europe moved into a five-point lead at the end of the second day.
Europe were almost home and dry, though not surprisingly the Americans had other ideas and won the singles 8-4 in stunning fashion.
European victory was assured when Colin Montgomerie continued his unbeaten run in Ryder Cup singles matches with a halve against Scott Hoch.