|Abstract:||A well-known fact of the phonology of Spanish is the non-occurrence of palatal nasals and laterals in syllable-final position. The scarcity of examples with an alveolar-palatal alternation (e.g., desdÃ©n-desdeÃ±ar, clavel-clavellina) have led scholars to discuss whether they are instances of synchronic depalatalization (cf. Harris 1993) or they are lexical remnants that should be treated in terms of allomorphy (cf. Harris 1999). In this paper we provide evidence for maintaining depalatalization as an actual phenomenon by appealing to the phonology of borrowings and to other cases of place centralization, and we provide a parallel OT account of these facts. Overapplication of depalatalization in onset position in certain plural and diminutive forms (e.g., desdenes, claveles, clavelito) is analyzed as an output-output (OO) effect, as suggested by Kikuchi (1999) and Bakovic (2001) with respect to the plural cases. In our view, however, this OO effect extends to diminutives because it is restricted by the strongest version of 'base' proposed in Kager (1999).