We present the optical identification and spectroscopy of the host galaxy of GRB 050826 at a redshift z = 0.296±0.001. Image subtraction among observations obtained on three consecutive nights, reveals a fading object 5 hr after the burst, confirming its identification as the optical afterglow of this event. Deep imaging shows that the optical afterglow is offset by 0.4 (1.76 kpc) from the cent...