Perturbed by the events, King Joseph refused to live under a residence of masonry, and took refuge in a wooden shack next to the Palace of the Counts of Óbidos. As the Royal family continued to fear for the viability of their palace in Lisbon, the King ordered the construction of a more permanent wooden building in the heights of Alto da Ajuda and the royal architects began building an elaborate structure from wood.
The Paço de Madeira (Wood Palace) was completed on 20 September 1761. The court remained at this site for nearly three decades, in a luxurious atmosphere of the golden age of enlightened despotism, until the King's death in 1777.
The Queen Dowager was devastated after the assassination of her son King Carlos I and grandson Crown Prince Luis Filipe, on 1 February 1908 on the Praco de Commercio in Lisbon, and during her last years in Portugal, she withdrew from the public eye.