Situated next to the Hotel da Musica. Food market selling many different types of food from lots of individual stalls. Tapas, pizza, seafood, cheese, risotto and desserts to name a few. There is definitely something for everyone. A number of different bars too with beer, wine, cocktails and port.
All the sellers are really friendly and let you try before you buy. Great atmosphere too. Buy what you want from wherever you want and then find somewhere to sit. Very relaxed and informal way to eat and the food and drink is still excellent quality.
Even better, very good value e.g. 3 large pizzas and 3 beers less than €30, bottle of good quality red wine ( Alentejo) for €13.