The Bairro Alto, long the center of Lisbon's nightlife, is the best place for barhopping and is the center of the city's well-established gay and lesbian scene. Most bars here are fairly small, and stay open until 3 AM or so. Larger, designer bars started opening a few years ago along and around Avenida 24 de Julho in the Santos neighborhood, where—because this isn't a residential area as the Bairro Alto is—bars can stay open until 5 or 6 AM. The latest hot neighborhood is farther along the riverbank, next to the bridge in Alcântara, where the Doca do Santo Amaro and the Doca de Alcântara have fashionable terrace-bars and restaurants, some converted from old warehouses. Whichever district you choose, note that not all bars have signs outside; to find the latest places you may have to follow the crowds or try a half-open door. Don't expect to have a quiet drink: the company is generally young and excitable.
Lisbon's Alfama district is recognized as the birthplace of the haunting music known as fado, though today most performances occur in the Bairro Alto. In the adegas típicas food and wine are served, and fado plays late into the night: the singing starts at 10 or 11, and the adegas often stay open until 3 AM. It's becoming increasingly difficult to find an authentic adega; ask around for a recommendation. Note that some establishments charge (according to the night and who is playing) a minimum food and drink consumption fee, usually around EUR 10-EUR 15.
Lisbon has some glorious old cafés with rich interiors of carved wood, mirrors, and tiles. Many also have outdoor seating, so you can order a coffee, beer, or snack and watch the city pass by. Those that specialize in pastries and cakes are known as pastelarias (pastry shops), and their offerings are among the city's greatest contributions to the gastronomic arts: be sure to sample some. Most cafés remain open for at least the early part of the evenings on weekdays; a few have become late-night drinking haunts. Some cafés close early on Saturday and altogether on Sunday, however.