From the very beginning of their history, Andalusians have been used for riding and driving. They were among some of the first horses used for classical dressage, and they are still making a mark in international competition in dressage today. At the 2002 World Equestrian Games, two Andalusians were on the bronze-medal winning Spanish dressage team, a team that then went on to take the silver medal in dressage at the 2004 Summer Olympics.

For much of time since the inception of the breed, they were used as ranch horses, especially suited to working with Iberian bulls, known for their aggressive temperaments. They were, and still are, known for their use in mounted bull fighting, a favorite sport among the Spanish and Portugues. Today, Andalusians are used for show jumping, western pleasure and many other classes at horse shows. The current Traveler, the mascot of the University of Southern California, is an Andalusian.

The dramatic appearance of the Andalusian horse has made it a popular breed to use in film, particularly in historical and fantasy epics. Andalusians have been present in films ranging from Gladiator to Interview with a Vampire, and Lara Croft Tomb Raider: The Cradle of Life to Braveheart. The horses have also been seen in such fantasy epics as the The Lord of the Rings film trilogy, King Arthur, and The Chronicles of Narnia: The Lion, the Witch and the Wardrobe.

In 2006, a rearing Andalusian stallion, ridden by Mexican conquistador Don Juan de Onate, was recreated as the largest bronze equine in the world. Measuring 36 feet (11 m) high, the statue currently stands in El Paso, Texas.