Just beside Praia Vermelha, Terra Brasilis has gorgeous views of Pão de Açúcar looming overhead. Jazzy Música Popular Brasileira (MPB) bands play from about 8pm on weeknights (and at 1pm on weekends), making for a delightful open-air setting. It’s located in the building marked Circulo Militar da Praia Vermelha.
The food (mains R$44 to R$125) is less spectacular; it’s best to stick to drinks and appetizers.