Construction of Arco da Rua Augusta was planned in 1759 as part of the Pombaline reconstruction after the devastating earthquake of 1755, with a design by Eugénio dos Santos. Until 1843, the arch only rose to the height of its entablature, adorned with composite columns added in 1815, awaiting its completion. A competition was then held to finalize the work, which was won by the architect Veríssimo José da Costa. The construction of the triumphal arch, which had been closed since 1862 on the occasion of the wedding of King Luís I, as observed in photographs of the time, was only completed in 1873.

The upper part of the arch features sculptures by Célestin Anatole Calmels, while the lower part contains sculptures by Vítor Bastos. Calmels' sculptures represent Glory, crowning Genius and Valor. Vítor Bastos' sculptures depict Nuno Álvares Pereira, Viriato, Vasco da Gama, and the Marquis of Pombal. On the left side, the Tagus River is represented, and on the right side, the Douro River, both sculpted by Vítor Bastos. The Tagus and Douro rivers delimit the region where the Lusitanians allegedly lived.

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The inscription at the top of the arch celebrates the grandeur of the Portuguese Empire and the discovery of new peoples and cultures. It reads: "VIRTVTIBVS MAIORVM VT SIT OMNIBVS DOCVMENTO.PPD" which translates to "To the Virtues of the Ancestors, as an example for all. Dedicated at public expense".

Since August 9, 2013, visitors have been able to access the viewpoint at the top of the arch using an elevator and two steep staircases for a fee of 3 euros. In its first year of opening, it was visited by 130,000 people. In 2021, the arch transitioned from government control to the responsibility of the Municipality. This change reflects its significance as a cultural and historical landmark in Lisbon.

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