The hotel belt west along Estrada Monumental, where Madeira's Michelin kitchens sit above the cliff line and the promenade runs to the sea pools.
Casal da Penha is a family-run Funchal restaurant just off the hotel strip, with a classic dining room, a Madeiran terrace and a grilled fish carte.
Signature: Espetada, Grilled codfish, Bolo do caco
Order: Espetada on the laurel skewer, or the grilled codfish that fills most tables here.
Tip: The terrace is the reason to come. Ask for it when you book rather than on arrival.
Horta is PortoBay's healthy comfort-food room on the Funchal Lido promenade, flagging every vegan and vegetarian plate on an otherwise mixed carte.
Signature: Garden vegetables, Vegan barley risotto, Beetroot hummus
Order: The barley risotto with red pesto or the beetroot hummus, both listed vegan on the carte.
Tip: Closed Monday and Tuesday, and the a la carte runs in the evening only. Ask for a table on the Lido promenade rather than inside.
Avista hangs over Pirate's Bay on the Funchal cliff line, running a Josper grill menu and Asian plates across a carte built for sharing at table.
Signature: Josper grill plates, Asian sharing dishes
Order: Anything off the Josper grill, taken at a window table over the bay.
Tip: The operator publishes no schedule online, so confirm the lunch service when you book. Ask for the terrace edge, not the inner row.
Casa das Espetadas cooks Madeira's laurel-skewer espetada over wood in Funchal, with beef, chicken, tuna and pork versions off the same fire.
Signature: Espetada, Bolo do caco, Wood-oven plates
Order: Beef espetada on the bay-laurel skewer, hung at the table.
Tip: Closed Wednesday and Thursday, and the terrace runs folklore and fado on some evenings.
Villa Cipriani serves Italian cooking on the clifftop terrace at Reid's Palace in Funchal, revisiting Italian classics with the Atlantic below the balustrade.
Signature: Italian carte, Terrace dining
Order: A dish from the constantly renewed Italian carte, on the terrace.
Tip: The terrace tables at the seaward rail are the ones to ask for when booking. Last orders are at 22:30.
Chalet Vicente reopened on 28 July 2026 in a late-19th-century Estrada Monumental chalet, cooking regional Madeiran and Portuguese food in Funchal.
Signature: Regional Madeiran cooking, Portuguese petiscos
Order: Portuguese petiscos in the adega, which the reopened house runs alongside the dining rooms.
Tip: The rebuild added a ten-seat cigar room and a Portuguese adega. Schedules published before July 2026 predate it, so call before turning up.
Il Gallo d'Oro holds two Michelin stars at The Cliff Bay in Funchal, where Benoit Sinthon has run the kitchen since 2004 on an Iberian line.
Signature: Tasting menu, Madeiran produce, Iberian seafood
Order: The tasting menu, built around Madeiran produce and Iberian sourcing.
Tip: Closed Sunday and Monday. Kitchen and terrace works keep the room shut until it reopens on 26 August 2026, so check the date before booking.
Desarma is Octávio Freitas's rooftop restaurant above Funchal, Michelin-starred since February 2024 and cooking menus of six, nine or twelve moments.
Signature: Six, nine and twelve moment tasting menus, Madeiran produce
Order: The Chef's Battle menu, nine moments built on Madeiran produce.
Tip: Seatings run 19:00 to 21:00 Tuesday to Saturday, and the rooftop is best booked at dusk.
William is the Michelin-starred restaurant at Reid's Palace in Funchal, a blue and white room above the cliff named for hotel founder William Reid.
Signature: Tasting menu, Atlantic seafood
Order: The tasting menu, read against the sea view from the cliff terrace.
Tip: Dinner Tuesday to Saturday only. The dress code is enforced and the terrace seats fill first.
Avista hangs over Pirate's Bay on the Funchal cliff line, running a Josper grill menu and Asian plates across a carte built for sharing at table.
Signature: Josper grill plates, Asian sharing dishes
Order: Anything off the Josper grill, taken at a window table over the bay.
Tip: The operator publishes no schedule online, so confirm the lunch service when you book. Ask for the terrace edge, not the inner row.
The Dining Room occupies the manor house at Quinta da Casa Branca in Funchal, cooking a creative Madeiran carte built on produce from the hotel farm.
Signature: Creative Madeiran carte, Produce from the hotel farm
Order: The tasting menu with its wine pairing, taken on the al fresco terrace.
Tip: Dinner only, Tuesday to Saturday. The al fresco terrace tables are worth requesting when you book.
Villa Cipriani serves Italian cooking on the clifftop terrace at Reid's Palace in Funchal, revisiting Italian classics with the Atlantic below the balustrade.
Signature: Italian carte, Terrace dining
Order: A dish from the constantly renewed Italian carte, on the terrace.
Tip: The terrace tables at the seaward rail are the ones to ask for when booking. Last orders are at 22:30.
Casa das Espetadas cooks Madeira's laurel-skewer espetada over wood in Funchal, with beef, chicken, tuna and pork versions off the same fire.
Signature: Espetada, Bolo do caco, Wood-oven plates
Order: Beef espetada on the bay-laurel skewer, hung at the table.
Tip: Closed Wednesday and Thursday, and the terrace runs folklore and fado on some evenings.