Despite extensive literature on the nature and impact of gentrification, there has been little consideration of the effects of gentrification on ethnic neighbourhoods. This study evaluates the negative and positive effects of gentrification on the Portuguese in west central Toronto. Details concerning the settlement patterns of the Portuguese, the characteristics of Portuguese residents and patterns of gentrification in inner-city Toronto were obtained from census data. Evaluations of neighbourhood change and attitudes of the residents towards gentrification were obtained from key informant and focus group interviews. The results suggest considerable ambivalence among the respondents, but most agreed that the long-term viability of Little Portugal as an immigrant reception area with a good supply of low-cost housing is in doubt.