FunchalMadeira's top city sitting in an amphitheatre-shaped valley.
Funchal is the capital of Portugal’s Madeira Islands, located in the middle of the Atlantic Ocean. The city is known for its stunning natural setting, with mountains and cliffs surrounding the harbor. The old town is a maze of narrow streets and colorful houses, and is home to a variety of restaurants, bars, and shops. The city is also a popular destination for nature lovers, with plenty of hiking and biking trails in the surrounding area.