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Photo: Chris from Canada, CC BY 2.0 via Wikimedia Commons
Quite large place with some nice natural scenery together with traditional building styles. Don't forget to take pictures on the center bridge where the Yu Long Xue Shan (The Jade Dragon Snow Mountain) can be a perfect background. Popular with locals, whom you can find dancing or playing games such as mahjongg or Chinese chess. You can also hike up Elephant Hill if you're feeling energetic. Walk north along the canals from the waterwheels just to the north of the old town. It is about 10 minutes walk up-river.
Black Dragon Pool is a famous pond in the scenic Jade Spring Park located at the foot of Elephant Hill, a short walk north of the Old Town of Lijiang in Yunnan province, China. It was built in 1737 during the Qing dynasty and offers views of the region's tallest mountain, Jade Dragon Snow Mountain, over its white marble bridge.
© OpenStreetMap contributors
东巴文化博物馆
A small museum featuring the Dongba religion and culture. Quite intriguing to see how other Chinese beliefs are related to the Dongbas.
纳西古乐会
Enjoy the traditional Naxi music Culture Show performed by the Naxi Orchestra, which includes some 70-90 year old men. The music itself is a combination of traditional Chinese music dating back to the Tang dynasty and local instruments and flavours. The music is well performed, however be prepared for long explanations of its musical history in Mandarin between each piece and the sometimes self-serving comments of Xuan Ke the Director. While the Naxi Ancient Music group of Lijiang is famous and well promoted, there are other excellent classical Chinese music groups playing in Lijiang's parks (for ¥10) or at weddings or housewarmings all over Yunnan.
木府; Mùfǔ
The palace where the Mu Clan of the Naxi people ruled for over 400 years. It is a large complex that extends part way up the hill behind it. There used to be a lot of high quality paintings in the palace and finely carved wooden doors, but most were destroyed during the Cultural Revolution. At the back hill of the Mu's Palace is the 'Lion Hill Scenic Area', which requires additional ¥40 entrance fee. At the top is a Daoist temple, with a few Daoists ready to give fortunes to visitors for a donation. A taste of Mulaoye Wine (木老爷酒; Mùlǎoyejiǔ), a kind of local alcohol, is available for ¥5 (in a shot glass), and there is also a free tea tasting area. Allow at least two hours explore this expansive complex and do wander off into the side courtyards as it will take you back to the main courtyards. If you are visiting Wangulou, exit the Lion Hill Park from the south exit which leads you right into the back entrance of Mu Palace.
丽江古城, 大研古城 Dayan Ancient Town
Walk around, watch people, shop, drink and eat. There is a bonfire at around 19:00 at the Si Fang Jie (四方街), the central plaza. Many local folks dance there, apparently entertain themselves. Tourists are welcomed to join. And if you get there early in the morning, you can avoid the crowds.
束河古镇
Better than Lijiang if you want a place less commercialized; a horse ride in the town is an attraction.
茶马古道博物馆
One of the main attractions in Shuhe Old Town. The museum is housed in a former Buddhist temple, which was historically known as the Dajue Temple (大觉宫) and dates back to the late Ming Dynasty. So besides the exhibitions on the Old Tea Horse Road, one can also view some old Buddhist murals. More murals from the same time period may be seen at Baisha Old Town (see below).