Constant changes in the wind direction have seen nearly 1,200 firefighters continue to fight flames on various fronts, which has so far scorched more than 20,000 hectares of forest.
The fire has so far resulted in 29 injuries, one of whom remains in a serious condition, while the smell of burning spreads across the Algarve.
There have also been a series of powercuts overnight, with the blaze reaching the popular hotwater spring area of Caldas de Monchique, where all hotels have been evacuated.
The Portuguese Civil Protection Authority said overnight that there were many re-ignitions around the large wildfire in Monchique that are being fanned by strong winds.
A total of almost 1,200 firefighters, more than 350 vehicles and 13 aircraft have been drafted in to help try and control the blaze.
Groups of firefighters have arrived from Aveiro, Beja, Coimbra, Evora, Leiria, Lisboa, Santarem, Setubal and Viseu.
The sky over the area was clear for most of the day, but by late afternoon a thick cloud of smoke hung over Monchique making the air almost unbreathable while a lot of ash was being blown over the town.
Almost no locals were to be seen in the town but there were scores of firefighters and security force officers.
Part of the road that goes from Monchique to Pico da Foia, the highest point in the Algarve, about eight kilometres from the town was evacuated as the fire approached.