Monchique is a prominent 902 m topographic high in SW Iberia, which stands out in the general flat landscape of southern Portugal. It lies to the north of the Africa-Eurasia plate boundary, which locally accommodates a slow oblique convergence (∼5 mm/yr). Monchique comprises alkaline magmatic rocks of Late Cretaceous age, intruded in a post-rift context. It hosts the most active seismic cluster in mainland Portugal and important hydrothermal activity.This work investigates the relationship between the alkaline intrusion, local seismicity and hydrothermalism.We present magnetic and gravity modeling based on new drone-borne magnetic data and ground gravity data. New magnetic mapping of Monchique shows a ∼ 15 km long dipolar anomaly with 7–8 km wavelength and 2000 nT amplitude. 3D magnetic inversion models the main Monchique intrusion as a high-susceptibility body, 15 km long and 6 km wide, located below the Monchique mountain and extending 5–7 km depth. 2D forward modeling and geological interpretation further support the existence of ENE-WSW oriented dike-like gabbroic bodies that may extend deeper, around which syenite units have later emplaced.We relocate the seismicity using NonLinLoc and a 3D regional tomographic model, and find that earthquakes align along four main lineations that radiate outwards from the intrusion. We also find that most earthquakes cluster between 8 and 18 km depth, below the magmatic intrusion. The b-value at the core of the seismic cluster is higher than at the surrounding region, possibly related to the local hydrothermalism. We present five new focal mechanisms that are compatible with the regional stress field, supporting a regional tectonic control.The emplacement of the Monchique alkaline intrusion left fractures in the lithosphere that currently act as preferred pathways for fluids. In the context of the present-day stress field, the enhanced fracturing and fluid circulation facilitate the localization of small-magnitude earthquakes.