Ferragudo has a lively square with some nice cafes and restaurants. At Praia Grande beach you will find several bars and restaurants.
In the trendy beach bar/restaurant Club Nau they often organize live music.
Across the river (only 5 minutes away by water taxi) are the Marina de Portimão and Praia da Rocha. Nightlife is very lively with pubs, music bars, trendy clubs (for example Nosolo Aqua) and discos.