Loulé, which was inhabited by the Romans, has preserved a few remnants from the walls of its Moorish castle. It is a large horticulture and handicraft centre and an important distribution point for produce and products from the mountain villages.
The surrounding countryside is covered with algarroba, almond, fig and olive trees.
Loulé is situated landinward, the nearest beaches can be found between Quarteira and Faro at 13 km.