There are no train services between the Algarve and Andaluzia.
Ryanair has been operating flights between Faro and Madrid where you could connect to Granada with Spanair but it looks like this service is going to be suspended over the winter.
There is therefore only one real option.
Get an alsa.es bus from Faro as follows:
FARO 02:00
TAVIRA 02:30
VILA REAL ST ANTONIO 02:45
AYAMONTE 04:00
HUELVA 04:30
SEVILLA 05:45 (change bus)
GRANADA 09:00
Buses leave from outside Faro Bus Station. Tickets should be purchased online at www.alsa.es or a day or two before from the travel agency on the left as one walks into faro Bus Station.
