Possibly the Algarve’s best-kept secret, Olhão is an authentic fishing town just 15 minutes from Faro Airport. Despite its small size, we managed to uncover a whole heap of charming things to do in Olhão during our most recent visit.
As a former travel journalist, I’m always on those ‘hidden gem’ destinations. The ones the locals don’t want you to know about, and travellers tend to gatekeep. Olhão is one of those places.
While it might not have the nightlife of Vilamoura or the dramatic cliffs of Lagos, its quiet charm lies in its flower-filled streets, bustling markets, and back-in-time charm.
I spent my whole trip getting up close and personal with this place in order to bring you the complete insider guide to visiting. That includes 20 of the best things to do in Olhão, plus where to stay, FAQs, and anything else you need to know before you go.
Can’t find what you’re looking for? Just let me know in the comments section.
Things to Do in Olhão, Portugal at a Glance
Where to Stay:
Casa Dos Mercados – Minimalist boutique next to the sea
Pure Formosa Concept Hotel – Modern spot with a rooftop pool
Casa Amor – Luxury escape with dreamy interiors
Best Time to Go: Visit during April/May or September/October for pleasant temperatures and fewer crowds. Or pick summer (June-August) for the best chance of beach weather.
3 Unmissable Things to Do: Stroll through the iconic municipal markets, take a boat tour of the Ria Formosa Natural Park, and get a gorgeous souvenir at a mosaic-making workshop.
What’s the Weather Like: May to October – Average daily high 26°C (79°F). November to April – Average daily high 18°C (64°F)
Top Tip: Try the Folar de Olhão – a traditional Easter cake that’s made with layers of dough, butter, brown sugar and cinnamon. Like a cinnamon bun in cake form!
20 of the Best Things to Do in Olhão
1. Make a Moasic to Take Home
Mosaic making has got to be one of the cutest things you can do on your holiday to the Algarve.
A workshop at Moasic Olhão lets you create the ultimate souvenir to take home, from colourful coasters to pet-inspired decor and pretty picture frames. It’s also the perfect rainy day activity for the Algarve if you happen to travel out of peak season!
The two-hour class takes place at the Moasic Olhão boutique, and is available at selected times Monday to Saturday.
2. Visit the Famous Municipal Market
You can’t miss the Municipal Market. Literally, because it’s made up of two gigantic red buildings with turrets right on the seafront.
The municipal market is emblematic of Olhão, and tells you a lot about the town’s history in fishing and local produce.
One of the buildings is home to an array of fruit and vegetable stands, while the other focuses on fish and seafood. They’re both open daily from 7:00am to 1:00pm (closed on Sundays).
On Saturdays, the market spills out onto the seafront with a vast array of regional products and artisanal goods, from jars of local honey to gorgeous hand-painted ceramics. I’d definitely try to swing by on a Saturday morning if you can!
The market halls are also one of the town’s central social hubs, with bars and hole-in-the-wall restaurants lining the exterior of the buildings. With menus inspired by what’s on offer at the markets, you’ll be treated to ultra-fresh fish and seafood, plus local drinks and your favourite cocktails.
It’s the perfect place for a sunset drink overlooking the coastal lagoon!
If you’re a foodie, you can even take a food tour of the markets, where you’ll learn about local cooking techniques and taste a few local delicacies.
3. Tour a Local Olive Oil Farm
There’s nothing quite like olive oil from Southern Europe, and the Algarve is no different. Just 15 minutes from Olhão, there’s an authentic olive oil farm you can visit in Moncarapacho.
You’ll get to stroll the olive groves, learn a little bit about small batch production, and then taste three premium olive oils to get a sense of their different flavour profiles.
This tour is an absolute must-do for any foodie! We were blown away by the remarkably different taste of each variety, and it was so interesting to learn about the growing and harvesting conditions that affect the finished product.
You can book the tour here. Just FYI, you’ll need to arrange your own transport to and from the farm from Olhão.
4. Have a Drink with a Panoramic View of the City
Olhão is often overshadowed by its next-door neighbour, Tavira in the ‘prettiness’ stakes, but just wait until you get a bird’s eye view.
Head to the Pure Formosa Concept Hotel at sunset for unforgettable vistas over the white-washed city and stunning tidal waterways beyond.
It’s definitely worth heading up there for a drink or two (while you drink in the view).
I would also recommend this hotel as a place to stay. It’s got a rooftop pool alongside the bar, and clean, modern rooms with all the amenities.
Staying there makes it even easier to enjoy the only panoramic view in the city.
** You might also be interested in reading 10 Gorgeous Hotels in Olhão + Where to Stay.**
5. Eat Dinner from a Roof Tile
Unlike some towns in the western Algarve that serve up lines of cafes serving full English breakfasts, you can get a true taste of Portugal in Olhão.
The seafront is heaving with authentic local restaurants serving up regional dishes like cataplana (rich, seafood stew), muxama (cured tuna), and braised pork cheeks.
There are options for every budget, and some even boast waterside views. However, if you’re looking for a really local experience, head to the low-key Restaurante Prazeres, located opposite the markets.
It’s the sort of place where the menu changes daily according to the catch of the day, and everything is net-fresh.
If you’re in the mood for a feast, order one of the chef’s suggestions, like the mixed shellfish or fish and meat combo – it comes served in a roof tile.
See the location on Google Maps here
6. Learn About the Local Legends
Take a quick wander around Olhão, and you’ll soon stumble across a few curious statues, from a warrior-like giant to a tiny polished silver child.
It turns out that while the town is often overlooked by tourists, Olhão has been one of Portugal’s key players throughout history. The Bom Successo – a replica wooden boat moored up in front of the markets – gives you a little insight.
The people of Olhão led the uprising against Napoleon’s regime in the early 1800s, and the Bom Successo eventually sailed across the Atlantic Ocean to Brazil in order to let the exiled Portuguese king know it was safe to return home.
The town is full of interesting little nuggets like this, some factual and some more myth and local legend.
Each of the statues throughout town tells a story, and you can take an enchanted legends walking tour to learn all about them.
If you’re the sort of person who loves to hear stories from locals on holiday, this one is for you!
7. Take a Tour of the Ria Formosa Lagoon
I couldn’t make a list of the top things to do in Olhão without mentioning the Ria Formosa Lagoon.
This incredible coastal waterway is a protected natural park and home to hundreds of species of wildlife, not to mention miles of tidal oyster farms and wild, sandy barrier islands.
A boat tour of the park is the perfect way to explore this unique environment. It’s about five hours long and includes stops at the three biggest barrier islands, plus the secret sandbank known as the deserted beach.
You’ll stop for lunch on the charming Culatra island, enjoy optional swimming spots, and learn about the local clams and oysters that call the lagoon home.
You can also take a boat tour of the lagoon at sunset if you prefer a shorter trip and want to enjoy the sheltered waters while the sky puts on a show.
8. Hit the Beach
Getting to the beach is a little bit of an adventure in Olhão.
You can get there on a Ria Formosa boat tour as mentioned above. Alternatively, if you want to spend the whole day on the beach, you can take a ferry or water taxi to either Armona or Culatra island.
The ferry is cheaper but only runs at set times, with more crossings during summer than in the shoulder seasons and winter. Meanwhile, a water taxi is a good option for groups of 4-5 if you want the convenience of leaving whenever you’re ready.
The ferry costs about €4.20 per person for a return ticket, while a water taxi is about €30 to €40 each way for up to five people.
You can find the ferry timetables here.
While getting to the beach requires a little extra effort, it’s pretty spectacular when you do. The beaches are located on vast barrier islands, so the sand seems like it stretches on forever.
Both Armona Island and Culatra Island have restaurants and bars serving up food and drinks for your day at the beach, with some small shacks right on the sand. Or, you can do as the locals do and bring a picnic.
There are also sunbeds and parasols for rent, along with windbreaks if required.
9. Explore the Barrier Islands
There’s more to see on the barrier islands than just beaches.
While Armona and Culatra are popular for their sandy swathes, you can also get the ferry to Farol, known as the Lighthouse Island.
This tranquil, car-free community is known for its charming red-and-white lighthouse, white-washed buildings, and idyllic beaches.
It was once home to a thriving fishing community, but is now just as popular with sun-seeking holidaymakers.
You could also spend some time exploring the village on Culatra Island, which is aiming to become a sustainable, waste-free community by 2030, or strolling the wooden boardwalks of the more serene Armona Island.
Your options for getting to the barrier islands are the same as described above: ferry or water taxi.
10. Go on a Dolphin Watching Tour
If you love to watch wildlife on holiday, then one of the best things to do in Olhão is certainly a dolphin watching tour.
These boat trips typically head through the lagoon and out into the open sea, stopping at spots where dolphin sightings are common.
While no wildlife sighting is ever guaranteed, several species of dolphins are commonly seen in this area, particularly between April and October, when tours report a 90-95% success rate.
Keep an eye out for the regularly sighted bottlenose and striped dolphins. If you’re really lucky, you might even spot a Risso’s dolphin or a whale.
11. Taste Portuguese Wine in a Local Boutique
If you’re looking for the best things to do in Olhão when it’s raining or overcast, a wine tasting workshop is my top choice.
Wine tastings take place in a charming boutique called Casta Nova in the heart of town. The owners are super friendly and really know their grapes!
You’ll get to try five local Portuguese varieties paired with tasty cheese and charcuterie, while a local wine expert guides you through the tasting process and flavour profiles of each one.
A fun and immersive way to indulge in a real taste of Portugal.
12. Visit the Church
I’ll be the first to admit, I’m not usually that into churches and cathedrals, but this one is really pretty!
Plus, it’s surrounded by a couple of squares lined with lovely cafes and bars, so you can admire the architecture while you grab a refreshment. Look out for the stork’s nest on the roof!
The church itself is called Church Matriz de Nossa Senhora do Rosário, and it’s an ornate Catholic masterpiece. You can attend a mass or service if that’s your thing, or you can pop inside at another time for a moment of quiet reflection.
13. Take a Tour of the Cork Factory
I didn’t realise this before I came to Olhão, but cork is a big thing in Portugal.
In fact, the country is the world’s leading producer, with sustainability-focused harvests supplying over 60% of global exports.
And it’s not just bottle stoppers either. You can find everything from bags and wallets to water-resistant shoes on offer, along with home decor like coasters and placemats.
In Olhão, you can even take a tour of a cork factory to learn more about the heritage trade. The factory is located a 20-minute drive from town, so it’s perfect if you’ve rented a car to explore more of the local area.
14. Browse the Independent Boutiques
Olhão is one of those rare towns that really feels like you’re stepping back in time.
You won’t find the typical high street chains here – instead, the cobbled streets are crammed with independent boutiques and artisanal homeware stores.
One of my favourite things to do in Olhão is just to spend a few hours popping into these little shops, chatting to the local owners, and possibly picking up a beautiful piece of handmade jewellery or some hand-painted ceramics.
Another great option for a rainy day!
15. Take a Trip Through the Secret Channel
So I know I already mentioned Ria Formosa boat trips on this list of things to do in Olhão, but this one is a little bit different.
Instead of exploring the barrier islands of Armona and Cultara, this tour takes you to a so-called secret side of the lagoon, through a hidden channel that is only accessible by a handful of boats.
You’ll get the chance to see seahorses in their natural habitat, before arriving at the charming fishing village of Fuesta. If you’re hoping to dig a little deeper into the abundant wildlife of the Ria Formosa, this tour is definitely for you.
16. Take a Day Trip to Tavira
If you’ve got days to spare in Olhão and are looking for nearby daytrips, I definitely recommend the pretty town of Tavira.
Another eastern Algarve gem, this one is renowned for its bridges and waterways, sometimes dubbed the ‘Venice of the Algarve’ (although I would argue that’s a bit of a stretch).
It is, however, a very pretty place in its own right, and has gorgeous cobbled streets, a Romanesque bridge, and waterside bistros to explore. There’s also an abundance of cute galleries and shops to pop into.
You can get the train from Olhão to Tavira in about 30 minutes, so it makes the perfect day trip. And if you want to stay for the evening, I strongly recommend a meal at Primitivo.
17. Check For Special Markets and Events
Olhão takes great pride in its markets, with regular events alongside the municipal markets and weekly Saturday bazaar.
For example, when we visited, there was a special flea market and octopus festival happening down by the waterfront. There was also a vinyl record fair at the República 14, a small cultural centre near the church.
Local happenings and events can be hard to find online, so your best bet is simply wandering around town when you arrive and asking locals for any upcoming fairs, events, or special markets.
In terms of big events, the Olhão Seafood Festival (Festival do Marisco) takes place each year in mid-August (typically around 10–15 August) at the Jardim Pescador Olhanense on the waterfront.
Set among traditional fishing boats and overlooking the salt marshes of the Ria Formosa, it’s one of the Algarve’s biggest food events, known for its huge open-air dining area, live music concerts, and stalls serving everything from oysters and clams to tiger prawns and grilled seabass.
18. Grab Coffee at Cafe Tinto
Honesty time: I spend most of my mornings on trips just searching for the ultimate coffee spot. And in Olhão, I found it.
Cafe Tinto is a tiny coffee shop tucked away down a side road in the newer section of town (further away from the seafront). But it’s worth a few extra steps to get there.
This place does proper espresso coffees alongside tempting deli sandwiches on home-baked bread, so it’s a perfect lunch stop too.
The place is pretty tiny, so you might just have to take your coffee to go. Also, it’s closed on Tuesdays and Wednesdays, so make sure you time your visit right (it’s open from 9am to 3pm on every other day of the week).
Get the Google Maps location here.
19. Visit the Municipal Museum
Another great activity for a rainy day is Olhão’s municipal museum, located right opposite the church.
Housed in a historical building that once served the local fishermen, it is now home to a small collection of artefacts and exhibits.
You can get some more insight into the role Olhão played in the uprising against Napoleon, with artefacts that bring the story of the Bom Successo to life.
It’s free to enter and is usually open on weekdays in the mornings and afternoons, with an hour’s closure at lunchtime.
20. Explore the Local Landscape on a Guided Hike
Feel like getting active? Want to see a bit more of the Algarve’s dramatic coastline?
You can take a guided hike with transport from Olhão, which includes the famous Praia da Marinha cliffs and a peek at the Benagil Sea Cave.
During the summer months, you can cool off after the hike with a swim at Senhora da Rocha.
You’ll need a decent level of fitness as the tour includes a few hours of walking, but it’s a fantastic way to see more of the Algarvian coastline if you’re short on time and staying in Olhão.
Things to do in Olhão, Portugal: FAQs
Is Olhão worth visiting?
Yes, especially if you’re looking for a more authentic, less polished side of the Algarve. Olhão has a distinct charm with its sugar-cube houses, local markets, and working fishing port, offering a more traditional Portuguese feel compared to resort-heavy towns.
It’s also the gateway to some of the Algarve’s most beautiful island beaches.
What are the best beaches in Olhão, Algarve?
Olhão’s best beaches are found on the nearby barrier islands in the Ria Formosa Natural Park.
Highlights include Ilha da Armona for easy access and laid-back vibes, Ilha da Culatra for a more local, unspoilt feel, and Ilha da Farol for classic Algarve scenery with soft sand and clear water. All are reached by short ferry rides from Olhão.
What to do in Olhão if it’s raining?
On a rainy day, explore Olhão’s famous markets, especially the Mercado Municipal, where you can browse fresh seafood, local produce, and regional delicacies. You can also enjoy long, relaxed meals in waterfront restaurants, take a mosaic-making workshop, try a wine tasting session, or take a short trip to nearby towns like Faro for museums and cafés.
How to get to Olhão?
Olhão is just a 15-minute drive from Faro Airport, making it one of the most convenient Algarve destinations to reach. You can also take a train or bus from Faro city centre.
We got an Uber from the airport, and it was really easy and well-priced.
Does Olhão have an Old Town?
Olhão doesn’t have a traditional ‘Old Town’ in the same way as other Algarve towns, but its historic centre is full of character. The grid of narrow streets, flat-roofed houses influenced by North African architecture, and waterfront promenade create a unique atmosphere that feels both historic and lived-in.
What is the prettiest town on the Algarve Coast?
This is obviously quite subjective, but Lagos and Carvoeiro are often considered among the prettiest for their dramatic cliffs and beaches. That said, Olhão stands out for its authentic charm and quick access to untouched island landscapes, offering a different kind of beauty compared to the more polished coastal towns.
Have more questions? Just let me know in the comments section below!
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