This paper presents a complete study on the dynamic behavior of the 132 m high Cabril arch dam (Portugal). In operation for almost 70 years, horizontal cracks appeared on the downstream face after the first reservoir filling, and in the 1980s the dam started showing signs of concrete swelling. To address the concerns about its long-term safety, a pioneering continuous vibration monitoring system, designed for Seismic and Structural Health Monitoring, was installed in Cabril dam in 2008. In this work, the vibrations recorded under ambient/operational conditions for more than a decade are analyzed to estimate the modal parameters of the dam, which are then used to calibrate and validate a finite element model of the dam-reservoir-foundation system with the horizontal cracking. After that, the dynamic behavior of Cabril dam is simulated for the next decades, considering a computationally generated scenario of progressive damage due to concrete swelling. The results show that a) the dynamic behavior of Cabril dam is not being affected by the existing swelling phenomenon, and b) vibration-based analysis can be effective for detecting structural changes due to progressive damage. Lastly, the calibrated model is adapted for conducting non-linear seismic simulations, considering joint movements and tensile and compressive concrete damage. A method based on Endurance Time Analysis method is applied to assess the seismic safety of the dam with respect to the Operating Basis Earthquake and the Safety Evaluation Earthquake. The results confirm that Cabril dam can withstand accelerations several times greater than both earthquake levels, showing its adequate seismic capacity.