Facing the Tagus (Tejo) to the South, the plaza is still commonly known in Portuguese as Terreiro do Paço ([tɨˈʁɐjɾu ðu ˈpasu] (transl.

On 1 November 1755, during the reign of King José I, a great earthquake followed by a tsunami and fire destroyed most of Lisbon, including the Ribeira Palace and other buildings by the river.

José I's Prime Minister, the Marquis of Pombal, coordinated a massive rebuilding effort led by Portuguese architect Eugénio dos Santos.

His plan was realised almost completely, although decorative details were changed and the east tower of the square and the Augusta Street Arch were only finished in the 19th century.

The top section includes statues representing important Portuguese figures such as Vasco da Gama and the Marquis of Pombal.

[3] It has a clock and statues of Glory, Ingenuity and Valor (by the French sculptor Calmels) and those of Viriatus, Nuno Álvares Pereira, Vasco da Gama and, of course, the Marquis of Pombal.

The assassins were shot on the spot by police[5] and later recognized as members of the Republican Party – which two years later overthrew the Portuguese monarchy.

At the southern end of the plaza at the water's edge was a grand marble staircase meant for the arrival of royal dignitaries.