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Portugal w/ kids near Faro

We are going to Portugal mid March with our 3 kids (9,6,3). Renting a car in Lisbon and driving to Loule (near Faro) where my parents are currently living.

Looking for suggestions for things to do with kids in and around that area. We would like to take a few day trips, go to a good beach (even though the weather will be too cold to sunbathe) etc. My kids are good traveler and could handle a decentl drive to get to destinations or we could take trains if that's an option.

Thanks in advance for your help. We have never been to Portugal and my parents have only been there a few months.

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