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There are few cityscapes as startling and eccentric as that of Lisbon (Lisboa). Built on a switchback of hills above the broad Tejo estuary, its quarters are linked by an amazing network of cobbled streets with outrageous gradients, up which crank trams and funiculars. Down by the river, the outstretched arms of a vast, Rio-like statue of Christ embrace one of the grandest of all suspension bridges and a fleet of cross-river ferries.

For visitors, it's hard not to see the city as an urban funfair, a sense heightened by the brooding castle poised above the Alfama district's medieval, whitewashed streets, the fantasy Manueline architecture of Belém, the vibrant mosaics of the central Rossio square, and the adventurous contemporary architecture in the Parque das Nações. Gentler than any port or capital should expect to be, and defiantly human in pace and scale, Lisbon is immediately likeable.

For much of the last century, the city stood apart from the European mainstream, an isolation that ended abruptly with the 1974 Revolution, and the subsequent integration into the European Community (now the European Union) just over a decade later. Over the past hundred years, central Lisbon's population has more than doubled to over a million, one tenth of all Portuguese, with numbers boosted considerably after the Revolution by the vast influx of refugees - retornados - from Portugal's former African colonies of Angola, Cabo Verde, São Tomé e Principe, Guinea-Bissau and Mozambique. The retornados imposed a heavy burden on an already strained economy, especially on housing, but their overall integration is one of the modern country's chief triumphs. Portuguese Brazilians and Africans have had a significant effect on the capital in particular, and alongside the traditional fado clubs of its Bairro Alto and Alfama quarters, Lisbon now has superb Latin and African bands, and a panoply of international restaurants and bars.

The 1755 Great Earthquake destroyed many of Lisbon's most historic buildings. The Romanesque Sé (cathedral) and the Moorish walls of the Castelo de São Jorge are fine early survivors, however, and there is one building from Portugal's sixteenth-century Golden Age - the extraordinary Mosteiro dos Jerónimos at Belém - that is the equal of any in the country. Two major museums demand attention, too: the Fundação Calouste Gulbenkian, a combined museum and cultural complex with superb collections of ancient and modern art, and the Museu Nacional de Arte Antiga, which is effectively Portugal's national art gallery. The main contemporary highlight is the Oceanário (Europe's second-largest oceanarium) out at the Parque das Nações Expo site, and there are numerous smaller museums throughout the city too, but more than anything perhaps, it's the day-to-day life on display in the streets, avenues and squares that makes the city so enjoyable - from the shoe shiners of the Rossio to the multitude of Art Nouveau shops and cafés.

It would take a few days to do Lisbon justice, though it's better still to make the capital a base for a week or two's holiday, taking day trips and excursions out into the surrounding area. There's no need to rent a car; you can see almost everything by public transport. The beach suburbs of Estoril and Cascais are just half an hour's journey away to the west, while to the south, across the Tejo, are the miles of dunes along the Costa da Caparica. Slightly further south lies the port of Setúbal, featuring one of the earliest Manueline churches, and nearby is the resort of Sesimbra - a popular day trip for Lisboans. To the north is the Rococo Palácio de Queluz and its gardens, which you can see en route to Sintra, to the northwest, whose lush wooded heights and royal palaces make up Byron's "glorious Eden". Finally, further north, the extraordinary palace-monastery at Mafra marks a first step into the province of Estremadura.

Highlights

Bairro Alto Don't miss a night out in Lisbon's "upper town", packed with vibrant bars, clubs and restaurants.

Alfama Explore the city's oldest quarter, though be warned - getting lost here is half the fun.

Museu Nacional do Azulejo The splendid azulejo (tile) museum traces the history of this most Portuguese of art forms.

Museu Gulbenkian An awe-inspiring collection of priceless art and antiquities.

Mosteiro dos Jerónimos The magnificent Manueline monastery houses the tomb of Vasco da Gama.

Antiga Confeitaria de Belém Enjoy a tasty custard tart in Belém's most traditional pastry shop-café.

Lux Dance till dawn at one of Europe's coolest clubs.

Estádio da Luz The country's finest sports arena is the home of its most famous football club, Benfica.

Palácio National, Sintra A splendid royal retreat in the summer residence of kings.

Castelo de Palmela Stay the night in the converted castle at Palmela, now a luxurious pousada.

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