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From The Collaborative International Dictionary of English v.0.48:
Granulation \Gran`u*la"tion\, n. [Cf. F. granulation.] 1. The act or process of forming or crystallizing into grains; as, the granulation of powder and sugar. [1913 Webster] 2. The state of being granulated. [1913 Webster] 3. (Med.) (a) One of the small, red, grainlike prominences which form on a raw surface (that of wounds or ulcers), and are the efficient agents in the process of healing. (b) The act or process of the formation of such prominences. [1913 Webster]