Abstract The aim of this work is to analyze the entropy, entropy flux and entropy rate of granular materials within the frameworks of the Boltzmann equation and continuum thermodynamics. It is shown that the entropy inequality for a granular gas that follows from the Boltzmann equation differs from the one of a simple fluid due to the presence of a term which can be identified as the entropy density rate. From the knowledge of a non-equilibrium distribution function–valid for processes closed to equilibrium–it is obtained that the entropy density rate is proportional to the internal energy density rate divided by the temperature, while the entropy flux is equal to the heat flux vector divided by the temperature. A thermodynamic theory of a granular material is also developed whose objective is the determination of the basic fields of mass density, momentum density and internal energy density. The constitutive laws are restricted by the principle of material frame indifference and by the entropy principle. Through the exploitation of the entropy principle with Lagrange multipliers, it is shown that the results obtained from the kinetic theory for granular gases concerning the entropy density rate and entropy flux are valid in general for processes close to equilibrium of granular materials, where linearized constitutive equations hold.