The parish of Ajuda is located between the beach of Belém and the Monsanto hill. It was a place not very suitable for agriculture. Legend has it that a shepherd, passing through the area, had an apparition of the Virgin. The news spread quickly, and soon believers came and settled there. The Chapel of Our Lady of Ajuda was built for the adoration of the Virgin, which also led to the construction of houses and shacks.
The small sanctuary soon gave way to a larger church. The number of pilgrims grew every year, even the highest members of society paid devotion to Our Lady of Ajuda. An example of this was D. Catarina, wife of D. João III. The nobility tried to settle in the area to better worship the Virgin, making Ajuda a residential area for wealthy people.
The parish was established in 1551.