Praia Formosa is a coastal zona in São Martinho, on the western side of Funchal, centered on the long black-sand-and-pebble beach of the same name.

The neighborhood sits between the ocean and the more densely developed parts of São Martinho inland, with apartment buildings and older homes rising behind the waterfront.

A seafront promenade runs through the area, continuing west toward Câmara de Lobos, while the Doca do Cavacas natural pools sit nearby along the coast.

Forum Madeira and the larger commercial areas of São Martinho are farther inland.

Praia Formosa is defined less by a traditional neighborhood center than by its beach, promenade, and residential development stretched along the shoreline.