Because of its location equidistant between São Paulo and Rio de Janeiro, Paraty is a favorite weekend destination for the Brazilian upper crust—the cachaça-tinged soft landing from the demands of city life. There, you’re as likely to share one of the little bars on the town square with a fisherman as you are with a tech entrepreneur, ceramist, or painter.

Situated on Brazil’s Emerald Coast, Paraty is rich with colonial architecture and a past decorated with a trail of gold. In Paraty’s surrounding mountains, the Portuguese discovered the world’s largest gold deposits, making this village on the coast the first stop in the export of the precious metal on its journey to Rio de Janeiro, then on to Portugal.

Paraty’s architecture reveals a Portuguese influence.

Today, it’s a bohemian village whose name is pronounced “para-chi,” in the same charming way waiters say “bom appe-chi-chi” in this southeastern region of Brazil. The area was originally inhabited by the Guaianás people, who gave the town its name, which means “river of fish” in their native Tupi language.

It’s the cachaça-tinged soft landing from the demands of city life.

The village is full of tasteful boutiques, art galleries, and one of the world’s most esteemed puppet theaters. But its main draw is its location. Nestled between the jungle mountains and the sea, it is also the gateway to Brazil’s biggest archipelago. There are more than 300 islands to explore, and all are accessible by boat.

Boat tours—private or group—can be arranged easily and often.

Today, horse-drawn carts are a common sight in the cobblestone historic center of Paraty, declared a UNESCO World Heritage site in 2019. “Cobblestone” is a generous term; the streets are more like stretches of cobble-boulders—hilariously difficult to navigate with sea legs after two days exploring the islands by boat.

Visitors can choose which of the islands to explore as well as how to explore them. An expedition with Paraty Tours is the most commercial option. The good news is that it’s not short on comforts. The chef on board makes seafood to order, including grilled octopus and scallops dipped in farofa—toasted cassava—a Brazilian specialty, washed down with a bright caipirinha.

Natural wonders at the Mbya Guarani’s Araponga Village, in the Patrimonio district.

The boat stops at different islands, where passengers are invited to snorkel, paddleboard, and swim ashore, carrying their towel above their head or simply lying on the sand. Most of the islands are tiny and unpopulated, but some have beachfront restaurants, and others are home to only a single grand estate built in the Brazilian-modernist style. By law, all beaches in Brazil are open to the public, so those who choose to swim ashore may share the beach with the residents and their personal coconuts.

There are small-scale boat explorations available as well for the more adventurous. Travelers can simply walk to the Paraty pier, bypass the commercial tours, and hire a private boat, indicating on a map any islands of interest.

Com Licença UNA Poética offers both great shopping and a solid café.

As for accommodation in Paraty, there is no shortage of appealing options. There are many boutique hotels to choose from as well as pousadas (bed-and-breakfasts). For beach lovers who like to stay local, the Eliconial Paraty Pousada, in the Jabaquara neighborhood, is on the coastal end of town, and easily accessible by bike. It’s run by two French expatriates and their seven cats—all named for dances such as the samba and the mambo—and the room rate includes a four-course French breakfast, lush gardens, and a pristine pool.

Rooms with water views at Pousada Literária.

For an upscale experience in the historic center, Pousada Literária is well worth a look. Organized around a central garden as 27 suites and villas within different colonial structures, the Literária includes the Spa Poesia by l’Occitane, the top-rated Quintal das Letras restaurant, and the bookstore and pâtisserie Livraria das Marés.

The Fasano Angra dos Reis is among Paraty’s most modern hotels.

The region’s charms are such that the luxury world has also staked its claim, embodied by the Fasano Angra dos Reis, a scenic drive along the Emerald Coast from Paraty and a beautiful example of Brazilian minimalism. Architect Thiago Bernardes designed the hotel in a boomerang shape so all 60 rooms have sea views and plenty of sunlight. From the grounds, guests can hike to a nearby waterfall and possibly glimpse the storied capybara, the world’s largest rodent, popular with predators and social media alike.

With its proximity to the sea, Paraty is a seafood lover’s dream. It seems every other building in the historic center is a restaurant, many with live music, and strolling around and choosing based on atmosphere is a less risky proposition here than it might be in other resort towns.

Top, local wildlife includes a grazing capybara (tolerating a cowbird); above, puppetry at Teatro Espaço.

A standout culinary experience in Paraty is the Restaurante Caminho do Ouro, in the historic center. Don’t be put off by the ordering-on-iPads—this is Brazilian cuisine at its finest. The atmosphere is casual, but the food by chef Ronara is top of its class, especially the prawn risotto and baked sea bass with palm-heart fettuccine. There’s also great shopping at Com Licença UNA Poética, which sells upcycled jewelry made by local designers as well as Brazilian-leather sandals.

Brazilian cuisine is served with flair at Restaurante Caminho do Ouro.

And in case that’s not enough, there’s the puppet show. The Teatro Espaço is home to the Contadores de Estórias, a troupe known for a no-strings style of puppeteering in which the actors managing the puppets are equally part of the show. This style of performance was invented in Paraty in the late 1970s, and now the troupe tours the world. The shows tend to be artistic, beautiful, and full of surprises—much like Paraty itself.

Erin Granat is a California-based writer and filmmaker