Nazaré is a Portuguese town and municipality located in the Oeste region, in the historical province of Estremadura, and in the Leiria District. The municipality has a population of 14,889 in an area of 82.43 km2, while the town itself has around 10,000 inhabitants.

A funicular is a type of cable railway system that connects points along a railway track laid on a steep slope. The system is characterized by two counterbalanced carriages permanently attached to opposite ends of a haulage cable, which is looped over a pulley at the upper end of the track. The result of such a configuration is that the two carriages move synchronously: as one ascends, the other descends at an equal speed. This feature distinguishes funiculars from inclined elevators, which have a single car that is hauled uphill.