Lajes do Pico is a municipality and is located is on the southern part of the Pico Island. The population in 2011 was 4,711, in an area of 155.31 km². It is bordered by Madalena to the west and by São Roque do Pico to the north.

The history of this municipality can be traced back to 1460, when Fernão Álvares Evangelho built his residence in the area that began to be known as Penendo Negro, in Enseada do Castelete, an area south of the village of Lajes. Due to the necessity of potable water, he built his home alongside a ravine outside of town, that for many years was known as Ribeira de Fernando Álvares.