Olinda was the third city founded on Brazilian soil by European settlers and it was the original capital of Pernambuco State. It is a beautiful colonial town noted principally for its 16th- and 17th-century ornate Baroque churches and monasteries and for other colonial buildings. There is a large colony of artists who produce wood carvings and pottery. The city is located atop a low hill on the Atlantic coast, 5 min (8 km) north of Recife. UNESCO designated Olinda as a world heritage city.

At the "Alto da Se", every Sunday afternoon, there is an outdoor fair with artifacts, typical food, music, dance, and Capoeira presentations.

Olinda is also known among Brazilians for its creative and energetic street Carnaval that happens 24 hours a day for 4 days. People from Recife stay in Olinda during the Carnaval renting houses in the historic center where the party happens.