This is the statue of the Bear and the Strawberry Tree (el Oso y Madroño). You can find it at the east end of the Puerta del Sol where calle de Alcalá begins.
Why is it famous?
It is a representation of the city of Madrid.
In 1222, the bear (already symbolizing the city of Madrid) united with the strawberry tree to represent a deal between the Church and the city to allocate its pastures/trees .
In 1967, this statue, by Antonio Navarro Santafé, was placed where it stands today, at the beginning of calle de Alcalá.
For 23 years (1986-2009), it was relocated to the beginning of calle Carmen while the Plaza de Sol was being remodelled.
The Bear and the Strawberry Tree can also be found on the city of Madrid’s official coat of arms.