Alfama (Portuguese pronunciation: [aɫˈfɐmɐ]) is the oldest district of Lisbon, spreading on the slope between the Castle of Lisbon and the Tejo river. Its name comes from the Arabic Al-hamma, meaning fountains or baths. It includes the freguesias (parishes) of São Miguel, Santo Estêvão, São Vicente de Fora and part of two streets of Freguesia da Sé: Rua do Barão and Rua São João da Praça. It contains many important historical attractions, with many Fado bars and restaurants.

(WIKIPEDIA) During the times of Moorish domination, Alfama constituted the whole of the city, which later spread to the West (Baixa neighbourhood). Alfama became inhabited by the fishermen and the poor, and its condition as the neighbourhood of the poor continues to this day. The great 1755 Lisbon Earthquake did not destroy the Alfama, which has remained a picturesque labyrinth of narrow streets and small squares. Lately the neighbourhood has been invigorated with the renovation of the old houses and new restaurants where Fado—Portuguese typical melancholy music—can be enjoyed.
Overlooking the Alfama is the mediaeval Castle of São Jorge, royal residence until the early 16th century and now offering the best views of the city. In the slopes of Alfama there are other terraces (miradouros) from which to see the city, like the Miradouro de Santa Luzia, near the church of the same name and over remnants of the Moorish city walls, and the Miradouro das Portas do Sol (Gates of the Sun). Near Miradouro of Santa Luzia is located the Museum of Decorative Arts (Museu de Artes Decorativas), a 17th-century mansion with magnificent interiors.