Ferragudo sits on the banks of a small offshoot of the main Arade estuary. Right across the water from Portimão and Praia da Rocha, it has retained much of its original charm. The palm-lined riverfront here divides what can be considered the old village from the newer developments just across the water before it gives way to the little park. There is a charming square. Lined with cafes and fish restaurants along the water front.