Andrea Bargnani had 14 points for the Raptors, who ended the third quarter up by two before pulling away in the fourth. Amir Johnson added 12 points, scoring on several big dunks, while rookie Terrence Ross had 10 points, Jose Calderon had eight assists to go with nine points, and Ed Davis grabbed 10 rebounds.
Nikola Mirotic had 17 points and a game-high 12 rebounds to top the visitors, while Martynas Pocius added 15.
It was no surprise that the game, which came just two days after the Raptors finished their Halifax training camp, was a sloppy, dragged-out foul-filled affair for a Toronto team that featured 10 new faces.
Real Madrid, with four players from the Spanish team that won silver at the London Olympics, arrived game ready. The Spanish powerhouse -- winner of 30 Spanish League titles and eight Euroleague titles -- is a few weeks ahead of the Raptors in terms of preparation.
The team already won the Spanish SuperCup two weeks ago, and was coming off a 105-93 loss to the Grizzlies in Memphis two nights earlier.
The crowd was dotted with Madrid fans who periodically broke into Spanish songs.
The Raptors were missing newcomers Kyle Lowry and Jonas Valanciunas -- Lowry's debut has been put on hold because of a strained adductor muscle in his left leg, while Valanciunas is sidelined with a calf strain. Lowry is expected to miss all of Toronto's games this week.
The game marked the ninth time the Raptors have played an international team in the pre-season, having hosted teams from Greece, Italy, Israel, Lithuania and Russia in the past. The Raptors lost to Madrid in its 2007 pre-season trip to Europe.
Johnson scored seven points in the first as the Raptors ended the quarter up 29-22.
The Raptors turned the ball over five times in a sloppy second quarter and led just 50-48 at halftime.
Calderon led the team with seven points in the third and the Raptors took a 75-73 lead into the fourth quarter.
Notes: Toronto FC midfielder Torsten Frings was at the game. ... The Raptors play the Pistons in Detroit on Wednesday. ... The Raptors open the regular season Oct. 31 at home versus the Indiana Pacers.