Approximately 31 miles of Terceira lies the island of Graciosa. It has a surface area of 61 km2. It is called the white island due to the landscape and the names given to certain places like "Pedras Brancas" or White Stones, "Serra Branca" or White Mountain, and "Barro Branco" or White Clay. The island has about 4.600 inhabitants. The main municipalities are "Santa Cruz"  and “Lajes”.

The islets along the coast of Graciosa add a peculiar beauty to the islands. The "Praia" Islet, totally covered by vegetation, and the "Baleia" Islet, named this way because of it has shape of a whale.

Some of the places to visit:

• Ethnographic Museum which contains items related to the culture of wine and the now gone whaling industry.
• From the "Monte de Nossa Senhora da Ajuda", you can have a look over the town of Santa Cruz.
• The "Furna do Enxofre" (Sulphur Cavern), in the interior of the "Caldeira", or crater of a former Volcano there’s a tunnel about 100 meters deep and has a lake filled with cold sulphur water.
• It is possible to visit other caverns such as "Bolos, Lembradeira, Manuel de Ávila, Labarda, Furada, Linheiro, Cardo, Gato, Castelo, Calcinhas, Queimado, Vermelho, Cão, Urze and Luis".
• From the "Timão" summit, at an altitude of 398 meters, and the "Facho" summit, at an altitude of 375 meters, as well as from the "Dormida, Branca and Fontes" mountains you can get a glimpse not only of the island, but of the surrounding ocean and the islands of Terceira, São Jorge, Pico and Faial.
• The "Carapacho" Hot Spring Baths with medicinal waters.

Some of the Festivities:

• Espírito Santo (7 weeks after Eastern)
• Festival of Santo Cristo (early August):boat races, bullfights, plus cultural happenings.