Los Blancos, who all but clinched the Liga title on Saturday courtesy of their Clasico success over Barcelona, go into their second-leg clash with the Bavarians trailing 2-1 after last week's meeting at the Allianz Arena.
With the tie so delicately poised, Granero freely admits that the time has come for Jose Mourinho's men to really prove themselves after years of underachievement in Europe's premier club competition.
"The team know that the moment of truth has arrived and we want to be in the final," the midfielder told reporters at a press conference on the eve of the game.
"Bayern are a difficult team to play but we are prepared. We have players who are effective in attack. We are very offensive and we don't fail in that aspect in the big games."
The visitors need only to keep a clean sheet in order to progress to May's tournament decider in Munich, but Granero does not envisage Jupp Heynckes' side adopting a defensive approach.
“We do not expect Bayern to sit back and wait, as that would clearly not be good for them," the 24-year-old Spaniard reasoned. "We expect Bayern to be Bayern: a great team.
"But we are capable of achieving great things and we can get the result we need."
Mourinho has already stated that the Madrid players who are just one booking away from suspension must be willing to sacrifice themselves for the cause and Granero insists that the squad are in total agreement with their boss.
"The words of the coach are always the words of us all," he revealed. "We are all behind him."
Madrid's meeting with Bayern at the Santiago Bernabeu is scheduled to kick off at 20.45CET.
Starting last month and continuing for 10 weeks, Goal.com is publishing exclusive extracts from Luca Caioli's new book, Ronaldo: The Obsession for Perfection. The fifth extract, published last Friday, looks at the Portuguese's intense rivalry with Barcelona's Lionel Messi. Don't miss it!