Situated approximately 31 miles north west of Terceira. This island is the least humid island of the archipelago. Given the nick name of the "white island" due to the delicate landscape and the names given to certain places i.e. Pedras Brancas or white stones, teceira branco or white mountainside, barrow branco or white clay.

Santa Cruz is the main village and has amongst other interesting architectural features a photographic museum, which includes a history of the wine and now defunct whaling industry.

The furna do enxofre (sulphur cavern) is a unique geographical phenomenon; in the interior of a crater of a former volcano, a tunnel about 100 metres deep opens into a huge grotto with a magnificent volcanic vault 80 metres high and a lake filled with cold sulphur water.

The Carapacho Hot Springs Baths merit a mention due to the richness of their medicinal waters.

The islands along the coast of Graciosa are most attractive and serve as shelter for the numerous sea birds migrating across the Atlantic.