Carvoeiro is a small, picturesque resort village built around a sandy cove framed by ochre cliffs. Once a fishing village, it retains a quieter, more laid-back atmosphere than Albufeira to the east. The beach is compact but sheltered, and the surrounding coastline has some of the best diving in the Algarve.
The cliff-top walk to Algar Seco — a headland of carved limestone arches and sea caves — is the essential short walk of the town. Further east, the Benagil cave is reachable by boat: a domed sea grotto with its own small beach and a circular opening in the ceiling that lets sunlight pour in. Carvoeiro makes a good base for exploring the central Algarve without the crowds.