The neighbouring town of Canela, ten minutes' drive away, is effectively part of the Gramado experience and is where the Cascata do Caracol, Parque da Ferradura, and most of the canyon viewpoints sit. The Ferradura is a horseshoe-shaped canyon more than 400 metres deep — the rim viewpoint gives you one of the best natural panoramas in the Serra Gaúcha, and a trail descends inside to a small waterfall and pool. Canela itself has its own character: quieter, more forested, with the fine stone Catedral de Pedra in the main square.
Beyond Canela, the wider Serra Gaúcha is full of vineyards, cheese producers, and dramatic canyons. Bento Gonçalves and the Vale dos Vinhedos wine valley lie about 70 kilometres to the south-west, with cellar doors, rural restaurants, and Brazil's first DOC wine appellation. A half-day drive through the vineyard roads, with a proper tasting lunch, makes an excellent counterpoint to Gramado's mountain scenery.
The Aparados da Serra National Park, around three hours east, contains the spectacular Itaimbezinho canyon — a 700-metre-deep gorge that is one of the most impressive in Brazil. It is a long day from Gramado but entirely doable; many visitors prefer to stay overnight in the village of Cambará do Sul to have the parks to themselves in the morning and to combine Itaimbezinho with the Fortaleza canyon in the adjacent Serra Geral National Park.
