The coexistence of residents and tourists in historic neighbourhoods, and the increased pressure of nightlife in the same areas, often leads to conflicts. An in-depth analysis of the sources of conflict is crucial for developing appropriate strategies to manage these urban areas. This paper specifically addresses conflicts between tourism and residential life in historic neighbourhoods. A case study was carried out in Bairro Alto, a typical neighbourhood in Lisbon’s historic centre, with a strong identity and historical value, and simultaneously one of Lisbon’s top nightlife districts. For the purpose of conflict analysis six variables were chosen — stakeholders, stakeholders’ interests, stakeholders’ power, conflict between residential and tourism uses, dimensions of the conflict and conflict mitigation. The initial framework was based on interviews carried out with four types of stakeholders: residents; tourists and visitors; business owners and public bodies and local associations. The Progress Triangle tool was used to analyse the data. When applied to conflict analysis in the historic neighbourhood of Bairro Alto, the Progress Triangle tool provided clear identification of three dimensions of conflict: substance, procedure and relationship. The analysis highlighted noise production during night hours in Bairro Alto as one of the main problems and showed that the existing measures to mitigate noise were not working.