Varadero — sometimes signposted as El Varadero — is the original fishing harbour at the eastern end of Puerto del Carmen and the most atmospheric corner of the resort. A small horseshoe-shaped bay protected by a stone breakwater shelters a fleet of working and pleasure boats; whitewashed houses and the original village church (the Iglesia de Nuestra Señora del Carmen) sit just back from the water. The fishermen still bring catches in to the harbourside auction in the early morning, and a row of seafood restaurants — the Vista Mar, La Tegala and others — cluster around the edge of the bay.
A small sand-and-pebble beach behind the harbour is the original village beach and is more sheltered than Playa Grande on windy days. Walk down the cobbled steps from the church plaza for the best photo angle on the harbour and the boats. The whole area is at its most attractive in the late afternoon and early evening, when the working day winds down and the restaurants put their tables out on the quayside.