The most beautiful square in the old town, framed on three sides by white-and-granite arcaded buildings and on the fourth by the Church of Nossa Senhora da Oliveira. The square gets its name from a legendary olive tree planted here by a 7th-century king, said to have miraculously sprouted leaves.
In the middle stands the Padrão do Salado, a small Gothic canopy built to commemorate the 1340 victory over the Moors at the Battle of the Salado. The square fills with café tables in the warmer months and is the natural place to take a long lunch.