Welcome to our comprehensive guide to the best restaurants in Albufeira, focusing on both the charming Old Town and the vibrant New Strip. At Algarve Villa Selection, we understand that dining out is an essential part of any holiday experience, especially when you’re staying in one of our luxury villa rentals in  Albufeira.

Whether you’re craving traditional Portuguese cuisine, fresh seafood, or international flavours, Albufeira’s culinary scene has something to satisfy everyone.

The Best Traditional Portuguese restaurants in Albufeira Old Town

Albufeira’s Old Town is a treasure trove of traditional Portuguese eateries. Here are some of our top picks:

Os Arcos Restaurante

Os Arcos Restaurante, Albufeira

Tucked away in a quaint side street, Os Arcos Restaurante is a hidden gem that offers an authentic Portuguese dining experience. Known for its delicious fresh fish dishes and homemade specialties, this cosy restaurant is a favourite among locals and tourists alike. 

The rustic decor and friendly atmosphere make it an ideal spot for a relaxed dinner.

Restaurante Veneza

Restaurante Veneza

For a more upscale dining experience, Restaurante Veneza is hard to beat. This establishment prides itself on serving the finest Portuguese and Algarvian dishes. With an impressive wine cellar boasting over a thousand different wines, it’s a paradise for oenophiles. Their sharing platters are perfect for sampling a variety of local flavours.

The Best Seafood restaurants in Albufeira

Being a coastal town, Albufeira is renowned for its excellent seafood. Here are two standout options:

Castelo Do Mar

Castelo Do Mar

Perched on a hill overlooking the harbour, Castelo Do Mar offers not only delectable seafood but also stunning views. Their menu features a variety of fresh fish dishes, as well as traditional Portuguese cataplana. The terrace is the perfect spot for a romantic dinner while watching the sunset over the Atlantic.

Taberna Vicentina

Taberna Vicentina

This small, family-run restaurant in the heart of Old Town is a must-visit for seafood lovers. Their octopus dishes are particularly popular, and the grilled fish of the day is always a safe bet. The intimate atmosphere and friendly service make for a memorable dining experience.

Are There any Good Vegetarian or Vegan Options in Albufeira?

While traditional Portuguese cuisine is heavy on meat and seafood, Albufeira does offer some excellent options for vegetarians and vegans:


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Eurasia stands out as one of the few restaurants in Albufeira catering exclusively to vegetarian and vegan diets. Operating on a buffet system, it offers a diverse range of Asian and international dishes. It’s an excellent choice for a light lunch or dinner if you’re looking for a break from traditional Portuguese fare.

What are The Best Restaurants on the New Strip in Albufeira?

While the Old Town is known for its traditional charm, the New Strip offers a more modern dining scene:

Staar Restaurante

Staar Restaurante

Staar Restaurante is a popular choice on the New Strip, offering a mix of Portuguese and international cuisine. Their extensive menu includes everything from fresh seafood to steaks and pasta dishes. The modern decor and attentive service make it a favourite among visitors to Albufeira.

Indian Sizzler

Indian Sizzler

For those craving a taste of India, Indian Sizzler on the New Strip is highly recommended. Known for its authentic flavours and generous portions, it’s a great option if you’re looking for a change from Portuguese cuisine. Don’t miss their delicious naan bread and aromatic curries.

O Farnel (Steakhouse)

O Farnel (Farnels) Albufeira

Some of the best steak we’ve ever eaten. No, seriously!

Located on a side street halfway up the strip, O Farnel Steakhouse lives up to its reputation for serving the best steak in Albufeira. This locally-owned family restaurant offers superb cuts of meat, with the fillet steak emerging as a clear favorite on the menu.

Beyond the exceptional steaks, O Farnel also impresses with its sides like onion rings and chips. Topping it off is the warm and friendly service that makes this authentic steakhouse a can’t-miss dining destination for both first-timers and repeat visitors to Albufeira.

What should I know before dining out in Albufeira?

Here are some helpful tips for your culinary adventures in Albufeira:

  1. Reservations are recommended, especially during peak season.
  2. Many restaurants in the Old Town are small and can fill up quickly.
  3. Most restaurants serve dinner from around 7 pm, but locals often dine later.
  4. Don’t be afraid to try the local specialties – the cataplana and fresh grilled fish are must-tries!

Need a Place to Stay? Let Algarve Villa Selection Help!

After indulging in Albufeira’s diverse culinary scene, retreat to the comfort of an Algarve Villa Selection property. By choosing one of our rental villas or apartments, you’ll have the freedom to explore Albufeira’s restaurants at your leisure while enjoying the privacy and amenities of a home away from home. 

Many of our villas in The Algarve are within walking distance or a short drive from the best dining spots in town. Book your Algarve Villa Selection property in Albufeira today and create unforgettable memories of exquisite meals and evenings in your private haven.