Loule is a rural administrative and active market town with some remains of a castle dating back to the 12th Century. The Arab castle has been virtually destroyed leaving some walls still standing that are now surrounded by modern buildings. Like most other towns in the Algarve, most of the older potentially interesting buildings have been destroyed in the earthquake that occurred in 1755.
Within the remaining walls is a museum with an explanation of what was in the past the grandeur of the castle. The various earthquakes that it has suffered through its history have damaged the 13th Century Church of São Clemente. However, its Gothic arches and side chapels that are from the 16th Century have survived.
The town of Loule, consisting of some 20,000 residents, is mainly concerned with producing souvenir products made out of copperware, leather, cane and wood, to service the tourist industry. The weekly Fair attracts tourists from all along the Algarve. Due to the demands of tourism, this town has blossomed in size. An important event is the annual Carnival held in February that is considered to be one of the best in Portugal. In the town there is a Museum that is devoted to the local industry of dried fruits and it is interesting to see how these products are prepared for the public.
To the west of the town is a hilltop Church that is built on the site of a 16th Century chapel. This is the destination of an annual religious procession that requires some physical effort on the part of the bearers of the church's religious shrines.