We are in the area for the first time when this takes place in August. What is it like and what is worth doing like seeing the jousting?

It is absolutely superb, we've been a few times over the years and the atmosphere is incredible. Set amongst the ancient castle and streets its like stepping back in time. The street food is lovely too, never had chicken in a roof tile before ! We'll be there this August again, it's a highlight of our stay. Highly recommended. You can even get dressed up as an old villager ! We just wonder the streets and don't bother with the jousting and such.

Thanks for the recommendation. Will go this weekend. It’s a busy week with the Portimao Sardine Festival and the Olhao sea festival so should be fun.