The serra de Monchique is an impressive mountain range, home to two of the region's highest peaks – Picota and Fóia. It is normally green and wooded with cork, chestnut and eucalyptus trees (except when fires break out which seems to be a regular summer occurrence). The area is a natural northern boundary for the Algarve. It is ideal hiking country. Monchique, a small village full of character,  is located 24km north of Portimao. Quite a bit of the route has been developed to a high standard so it is not such a chore to reach these days. It is a good center for handicrafts, locally made nougat, the local 'fire water' made from the fruit of the arbutus tree 'medronho', hand carved wooden utensils and large straw bags. Great views of the Algarve can be enjoyed from the nearby ruins of a Franciscan convent. Don't miss the sausage festival if you are in the neighbourhood during March! Its history is first recorded with the arrival, at Caldas de Monchique, of Roman settles drawn by the curative powers of the local waters. The local population grew slowly over the years and by the 16th century Monchique was big enough to justify a visit from King Sebastian (1554-1578) whose intention was to grant it the status of a town. Monchique's prosperity was founded on weaving wool and linen to make the sturdy fabrics worn in times gone by and on other activities that included felling and working the wood of the local chestnut trees. It earned its civic charter in 1773. The economic changes wrought by industrialisation signalled the end of local textile production and other manufactures. Today Monchique is a pretty town with a diversified economy based on tourism and crafts.
The small village 'Caldas de Monchique' nearby has the only spa in the Algarve. A pleasant, peaceful health resort to restore. The thermal spa sits on the edge of a ravine, with gardens, sauna, pool, Jacuzzi and Turkish bath facilities. Visitors can sample the waters direct from the spring  that emerges at a constant temperature of 32ºC. It is said to prolong your life by ten years provided you can put up with the strong smell of sulphur. Close by is the superb Morgado Golf course and its new (April 2006) sister course the Alamos  (which, I'm sure, is why they improved the road!).
Alferce
A charming village is made up of houses built in the style typical of the Algarvian countryside. The medieval origins of the village church are evident in its porch. Its triumphal arch and the ribbed vault in its main chapel. Nearby on Cerro do Castelo, stand the ruins of a fortification with concentric walls that was probably built by the Romans.
Marmelete
The low white houses on the Algarvian hills stand out from a palette of warm browns and ochre's. The  country chapel of Santo António (St. Anthony) stands on a small mound and affords great views of the surrounding countryside.

A small village on the N125. Nothing much to look at, but worth a brief stop. Regular markets. The turn off to the Palmares golf course is here otherwise you would be inclined to drive straight through. There is quite a bit of development going on here as it is currently a pretty empty area. Do not confuse with Odeceixe which is another town near Aljiezur.

A short drive East of Faro. This major fishing towns most obvious feature is the square-shaped flat-roofed houses, with their Moorish-style terraces. Behind the 17th century church there is the Nossa Senhora dos Aflitos Chapel. The fish market, a long unattractive (to some) building on the waterfront, offers a large variety of locally caught fish every morning. Other than the noisy bustle of the fish market there is little to make you turn East rather than West when leaving Faro airport.
Update 2012 An email from Berit Dias has reminded me that its about time the towns and villages on these pages were 'revisited' as a lot has changed in the dozen years I've been building this site and I realise I have been ( naturally ) concentrating the updates to the area 'local' to to Praia da Luz. He says of Olhão "...I do not like about Olhão your choice of word: "unattractive building on the waterfront," The two building from 1915 are not unattractive to everyone. Here is also an interesting very short, important example of history about Olhão ( http://members.virtualtourist.com/m/2a8b3/45588/ ) which I have commented on under the signature of beritdias. At the quay in front of Gelvi's icecream ( produced in the Gelvi icecream factory in Olhão ) bar, in the fishmarket building, lays a boat also today named Bom Sucesso..."

Approximately 37 miles from Faro is Portimao, the Algarve's newest city, of great importance as a fishing port. Carthaginians founded Portus Hanibalis, modern Portimão, in the sixth century BC. An earthquake in 1755 destroyed a large part of the city and much of its past. Probably the greatest attraction of Portimao is the shopping and the fresh sardines sold by the quayside. There's also a pretty impressive marina. The lively tourist / beach area of Praia da Rocha is walkable. On the first Monday of every month there is a market in the town with stacks of stalls selling gifts and souvenirs such as pottery, leather goods, wickerwork, embroidered linens and jewellery.

Just five minutes from Portimao. This was the first tourist resort to be developed in the Algarve (back in the 1930s).

Another small fishing village that has grown in the last 30 years into a thriving tourist resort. Almost a continuation of Villamoura these days complete with high rise tourist accommodation. Quarteira has a beautiful, long stretch of golden sand and a long tree lined promenade with lots of shops, restaurants and cafés along its length. Places to see: Church of Our Lady of Conception, the Church of São Pedro do Mar. The Forte Novo (New Fort).

Sagres is located on the westerly tip of the Algarve. Home to Henry the Navigator for 40 years the fortress in which he lived still stands.. From the battlements there is a superb view of Cape St. Vincent ( see below ) across a blue crescent bay. Some nice beach restaurants. Compare the bays either side of the fort, its pretty obvious which one faces the Atlantic!
Prince Henry the Navigator built a fortress and a shipyard here, much of it destroyed (along with his precious library) first in an English attack in 1587 and later in the 1755 earthquake. It is believed that it was on this site that Prince Henry gathered the most renowned astronomers, geographers, cartographers, and shipbuilders of the time to study the sea and the sky to launch his expeditions. Among the explorers who studied at Sagres were Vasco da Gama and Ferdinand Magellan and apparently Christopher Columbus. An enormous pebble wind compass 43m (141 ft) in diameter still clearly visible on the ground, and a simple but captivating 15th century chapel on the site are both believed to have been built by the Prince.
Overlooking the site is a modern bar / inn ( pousada ), where you can end the day with a great view of the sunset.
Nearby is Cape São Vicente, Europe’s most south westerly point, known to ancient mariners as the "End of the World," where it was believed the sun sank into the ocean every night. The awe-inspiring sight, standing on the 60m-high (200ft) cliffs fronting the immense Atlantic, can still make it feel that way today. The lighthouse has a 95-km (60 mile) range, the most powerful in Europe.
Nearby are also a few good beaches such as Praia da Mareta, Praia do Martinhal, Praia do Tonel, and the isolated Praia de Beliche.

Approximately 19km west on the main road (N125) from Lagos towards Sagres. This fishing village situated in a narrow valley leading on to a broad cove / beach, which has managed to retain it's character despite extensive building at the back of the village and on the cliffs. An active fishing fleet works out of here and a lot of the fish is used by the handful of restaurants in the village. A regular weekly market sells handicrafts and local produce. A sandy beach on the western side of the village is protected by cliffs. Look out for Dinosaur footprints when the tide is out. Boca do Rio (accessible by dirt road from Salema) and Ponta de Almadena beaches nearby.

Once the capital of the then Arab kingdom, Silves lies 17km north-east of Portimao. A once flourishing city of palaces, gardens and bazaars, Silves may have lost its influence but not its interest. The surrounding area is comprised of mile after mile of orchards - peach, almond and orange trees. The red sand stone fortress is open daily (09:00-19:00). A 13th century cathedral built of red and white sandstone has fine emblazoned tombs and should not be missed.

With its inviting long beaches, typical roofs and chimneys, this picturesque town offers a beautiful view over the Gilao river and its Roman bridge. Churches to visit: Santa Maria do Castelo (13th-18th centuries), Misericórdia (Renaissance), Nossa Senhora das Ondas (17th century), Sao Jose (with Gothic and Manueline elements), Sao Paulo and Carmo (17th-18th centuries). If you are browsing along the Travessa de Dona Brites, you will see beautiful medieval houses, with Gothic windows and portals. In the suburbs, in the small village of Luz there is a Renaissance church, which has been pilgrimage place for many centuries.

(Also see Sagres) - Used to be known as Aldeia do Bispo, or the Village of the Bishop. Home of the standing stones (Menhirs / Pedra Escorregadia) and the Bronze Age cyst burials (just to the south of the town). The menhirs are of Neolithic origin, and date to around 5000 B.C. Five centuries ago Prince Henry set up a school of navigation, which played a crucial role in the Portuguese discoveries. Apart from the Nossa Senhora da Graca Hermitage, you can visit the magnificent Fortress (originally built in the 14th century, and later altered) and the 15th century Rosados-Ventos (a 43 m diameter compass rose). Nearby, on the extreme south-western tip of the European continent is Cabo de Sao Vicente (Romans' Promontorium Sacrum). The village itself has been substantially 'smartened up' but plays second fiddle to the more trendy surfers village of Sagres, which is nearer the beaches/sea.