In 1297, the Treaty of Alcañices was signed between King Denis of Portugal and King Fernando IV of Castile, definitively establishing the borders between the two kingdoms. The treaty confirmed Portugal's possession of the Algarve and created a stable frontier that has largely persisted to this day. This agreement brought peace between the two Iberian powers and allowed them to focus on internal consolidation and overseas expansion.

The Treaty of Alcañices was a landmark diplomatic achievement that was celebrated in Portuguese and Spanish chronicles. The treaty's signing fostered a period of cultural and literary exchange between the two kingdoms, contributing to the development of the Portuguese and Castilian vernacular traditions. The event also reinforced the idea of national identity and territorial integrity, themes that are prominent in the epic and lyric poetry of the time.