Gramado is a municipality and small touristic town, southeast of Caxias do Sul and east of Nova Petrópolis in the southern Brazilian state of Rio Grande do Sul, in the Serra Gaúcha region. The town was originally settled by Azorean descendents and later received a contingent of German and Italian immigrants. Gramado is one of the towns along the scenic route known as Rota Romântica. Gramado was originally settled in 1875 by Portuguese immigrants.
Five years later, the first German immigrants arrived and these were followed shortly after by Italian immigrants from the Italian settlements in Caxias do Sul. In 1913, the town seat was moved to Linha Nova, the location of the present-day town center. At this time, Gramado was an unincorporated township within the municipality of Taquara. A railway arrived in Gramado in 1921, boosting the local economy. Gramado officially became a village in 1937, when Gramado was already known as a summer holiday resort. Gramado became a municipality on December 15, 1954 by force of State Act 2,522.
Gramado hosts the Festival de Gramado, a major South American film festival and Gramado’s most important event. Gramado is also known by hydrangeas blossoming in late spring. Another key event in Gramado is Natal Luz, when Gramado is decked out in lights and wreaths made of recycled material by local residents.
The climate is temperate with warm summer (Cfb). The summers are not hot, with temperatures that commonly do not exceed 30°C (86°F). Winters are cold, and temperatures usually below 0°C (32°F) and very rarely below -10°C (14°F), with occasional frosts and snow storms.