Setúbal is a working port city on the estuary of the River Sado, about 50 kilometres south of Lisbon. It lacks the postcard prettiness of the Algarve, but that is part of its appeal — this is a real Portuguese city where fishing boats still unload at the quay and the restaurants serve some of the best fresh fish in the country. The local speciality is choco frito (fried cuttlefish), and you will find it everywhere.
The old town has a handsome central market, the 15th-century Church of Jesus (an early example of Manueline architecture), and narrow streets worth wandering. Just across the estuary, the Tróia peninsula has long Atlantic beaches and Roman ruins. The Arrábida Natural Park, between Setúbal and Sesimbra, offers dramatic limestone cliffs dropping into clear water — some of the best coastal scenery near Lisbon. Above the city the star-shaped Fort of São Filipe commands the best view of the harbour.
Setúbal makes an easy day trip from Lisbon by train, or a good base for exploring the Arrábida coast and the Sado estuary, where you can sometimes spot bottlenose dolphins from the shore.