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Ferragudo is smaller and more traditional than it’s neighbour, Portimão. Located across the river estuary of Rio Arade, Ferragudo is a beautiful village and has actually been tipped to be one of the Algarve’s new hot spots! Many of the houses in Ferragudo are traditional fishermen homes - although it won't be a 'traditional' price to buy one these days! It really is a very picturesque scene when you arrive in Ferragudo to see the whitewashed houses 'tumbling' down the hillside towards the river front and people sitting outside the cafes around the village square, passing the time of day!
Ferragudo town is embraced by palm-fringed gardens, running alongside a narrow riverlet up to the main cobbled square, Praça Rainha Dona Leonor, a lovely square, with lots of café’s where you can sit for a delicious pastry and a coffee, for a breakfast in a morning, or something more substantial at lunch. Take a walk around the corner onto the quay and there are some more restaurants with a lovely view across the Arade river and offering delicious, fresh fish dishes. The aromas from the barbecues outside are very tempting!
If you wander down to the beach nearest to the village (Praia da Angrinha) you will see the rather amazing Fort of São João de Arade. It began life in the 15th century as a lookout tower and then was extended in 17th/18th century as part of the fortifications protecting the mouth of the river. (On the opposite bank, above Portimão marina, is the fort of Santa Catarina.)
At the beginning of the 20th century it was turned into a home on the initiative of the poet Coelho Carvalho which is how it came by it's present day, rather romantic, appearance. It is still private property, so unfortunately you can't go inside.
There are some lovely beaches in Ferragudo, Praia Grande and Praia do Pintadinho worth exploring, either by car or by foot. You’ll find signposts for the beaches, and for several bar-restaurants as you travel around, in case you want to pit stop for a drink or something to eat. For a relaxing holiday - good beaches, plenty of places for an evening meal and scenic walks - then Ferragudo is hard to beat.There are also lots of fun activities that will keep families of all ages entertained close to hand. 
The calm waters of the river are particularly good for windsurfing and other water sports and Slide and Splash water park is just a short distance away at Lagoa - ideal for cooling off on a hot summer's day! There are all sorts of boat trips from the river front in Portimão - fishing, trips around the coastline and caves, dolphin watching or even a trip up the river, up to the moorish Silves town.