The title is taken from the story of Boabdil, the last Moorish king of Granada, who is also mentioned frequently in the book. The spot from which Boabdil last looked upon Granada after surrendering is known as Puerto del Suspiro del Moro ("Pass of the Moor's Sigh"). The mother of the narrator and an artist friend of the mother's each make a painting which they call "The Moor's Last Sigh".
The book draws on a variety of real historical figures and events, including Boabdil's surrender of Granada, the demolition of the Babri Masjid, the 1993 Bombay bombings, the gangster and terrorist Dawood Ibrahim, as well as modern Indian political entities like Bal Thackeray and the Shiv Sena. Salman Rushdie mentions William Babington Macauley in this novel.