Former chapel dedicated to Our Lady of Incarnation, which supported the processions held in the cloisters.

Here, are entombed two of the three legitimised children of King D. João V (1706-1750): D. António and D. José (son of the Abbess Paula de Odivelas). Along with D. Gaspar de Bragança (entombed in the Cathedral of Braga), they were known as the “Children of Palhavã” for residing in a palace in the area that used to be called Palhavã (in Lisbon), where the Embassy of Spain is now located.

Given that they were not allowed to be entombed in the royal pantheon, this chapel was chosen for their eternal rest. This place was selected because Friar Gaspar da Encarnação, who was responsible for their education, had already been buried here.

According to the Latin tombstones on the pavement, here are also the hearts and viscera of several members of the Bragança Dynasty, preserved in Chinese porcelain pots with formaldehyde.

At the back of the room there is a fragment of an altarpiece from the chapel of São Sebastião (Paço do Lumiar, Lisbon).