Lagos is a nice little medieval walled town that has grown a bit outside the walls; still a working town & not as much of a “resort” as say Portimao or Albufeira. Last stop on the train, nice marina, proper fish market selling the local catch etc. Plenty of restaurants too. I doubt if it’s still there, but when we were there in ’99 there was a cracking Indian restaurant up near the fire station & Iberlagos apartments
If you’ve been to Portugal you’ll know about the “cover” – couple of bits of stale crusty bread & some sardine paste, which some restaurants charge a little too much for…
+1 Silves, also Sagres is a nice little harbour village a little further along the coast. Keep going along the coast to Cape St Vincent (well, as far as you can get without falling into the Atlantic) & see the navigator school where Columbus learned his trade (or did he found the school? Can’t remember).