Things to do in Yunnan: exploring Dali Old Town

Dali (大理) is one of the most popular destinations in Yunnan. Don’t miss this post if you want to visit the old capital of the Nanzhao kingdom.

In my blog, I have often talked about Yunnan, one of the most beautiful provinces in China. But my list of places to visit can’t be complete without mentioning Dali, the ancient capital of the Nanzhao kingdom, and the old capital of Yunnan (don’t miss my Yunnan travel guide).

Dali is a city with a millenary history. Located at a strategic point along the ancient Tea Horse Road (also known as the South Silk Road), the Erhai Lake naturally protects it on one side and the Changshan Mountains on the other (whose peaks reach about 4000 meters). Despite being at about 2000 meters above sea level, the climate is mild year-round, and the land is fertile. Dali is the most important center for the Bai minority, one of the largest in China and in Yunnan.

The Bai population (Bai means “white” in Chinese) is famous for their ability to work with silver and marble and for creating many incredible decorations. Bai houses are generally white, with beautiful paintings on the exterior walls. A whole book would not be enough to cover Bai culture, so the best thing to do is visit Dali.

Best Time to Visit Dali (大理)

Dali has a mild climate year-round, but the experience varies widely with the seasons. Like Lijiang (here my guide), Spring (March to May) and Autumn (September to November) are the best times. Summer is the rainy season, while winter is dry, and temperatures can drop quite a bit, especially when the weather is overcast.

How to get to Dali and what to do

Dali is well-connected and easy to reach. The fastest option is the high-speed train, which links Dali to Kunming in about two hours. In Dali, there is also a small airport located about 1 hour from the Old Town. Long-distance buses are available too, but with the convenience of trains and flights, they’re not really worth it unless you’re heading in from smaller towns nearby.

The old town of Dali

Dali’s main attraction is the old town, one of the few in China surrounded by walls. Unlike Lijiang, Dali is more authentic because many families still live there. For a panoramic view, I recommend a walk along the walls to enjoy the lake on one side and the mountains on the other.

The two main streets within the city are crowded and full of shops, but if you start wandering around a bit, you will immediately see why many agree that Dali is more authentic than Lijiang. My suggestion is to find accommodation in the old town.

For the evening, I recommend eating at this restaurant: 梅子井酒家(两百年古院店). It is over two hundred years old and is located inside a beautiful Bai house.

The three Pagodas (三塔)

The three pagodas are a temple complex about 1.5km from the old town of Dali. They can be reached on foot or by taxi. Apart from the three pagodas, you’ll find a complex of temples, and it takes at least a couple of hours to see them all. The three pagodas are different from most other religious buildings in China because they are truly ancient (unfortunately, after the Cultural Revolution, many ancient buildings have been destroyed).

While walking towards the mountain, don’t miss the small pond on the right side of the pagodas, where you can photograph the three pagodas reflected in the water.

I recommend getting there early in the morning, as soon as it opens, taking the electric bus to the top of the complex, and then walking down slowly. In this way, you’ll avoid the tourist groups.

A visit to the houses of the craftsmen

As I said at the beginning of the article, the Bai are excellent craftsmen, and their reputation is well deserved. In the Dali area, you’ll come across many forms of traditional craftsmanship, from wood carving to silver jewelry, but the most fascinating for me is the making of batik fabric. The idea is simple, to create patterns by preventing certain parts of the cloth from absorbing the dye, but the techniques vary from region to region.

In Guizhou Province, for example, the Miao minority uses wax to draw detailed motifs before dipping the fabric in color. Around Dali, Bai women follow a different method. Instead of wax, they use a needle and thread to sew intricate patterns, and the stitched areas resist dye. Once the stitches are carefully removed, the design appears in contrast against the colored background.

Watching this process, you realize how much patience and skill it takes. Each piece can require days of work, and yet the result looks effortless. It’s another reminder that China’s diversity goes far beyond the usual tourist highlights, and Dali is a place where you can still witness these living traditions up close.

China is the homeland of silk, and seeing with my own eyes the process that had remained a secret to the rest of the world for centuries was exciting. The paintings created by skilled silk artisans are true works of art and, as such, they are very expensive. One of the pieces on display was priced at €13,000 and took 13 months to complete.

Cangshan Mountain (苍山) and Erhai Lake (洱海)

If you have more than a day in Dali, I highly recommend spending time both up in the mountains and out by the water. Cangshan (苍山) rises directly behind Dali Old Town and is perfect for hiking. The easiest way up is by cable car, and there are a few different routes depending on how much time you want to spend. The most popular one is the Gantong Cable Car (感通索道), which takes you up to the Jade Belt Road, a scenic trail that runs along the mountain with great views of the town and Erhai Lake below. Walking this section is relatively easy. If you prefer something more adventurous, the Zhonghe Cable Car (中和索道) brings you closer to the higher peaks, where you can continue hiking on less crowded trails.

On the other side of Dali, Erhai Lake (洱海) is just as important to the region’s identity. You can cycle the lakeside roads, stopping at small Bai villages along the way, or take a boat ride to see it from the water. Each section of the lake has its own character. Around Caicun and Xizhou, you’ll find traditional houses and fields that stretch right to the shoreline, while the western side near Shuanglang is more developed with boutique hotels and cafés built directly over the water.

For me, the combination of Cangshan and Erhai is what makes Dali so special. You get the contrast of high mountains and open water, all within easy reach of the Old Town.

A visit to the local markets

Even if you’ve already traveled in Asia, I recommend visiting a local market. It’s always interesting to see how local people live, and a market is the perfect place. Not all village markets are open every day. For accurate information, and if you need a local guide, I always suggest contacting a local agency. Send me a DM on Instagram if you need one.

A visit to Xizhou (喜洲)

Xizhou (喜洲) is another charming ancient town near the shores of Erhai Lake, about 18 kilometers north of Dali Old Town. Unlike Dali, which has become quite commercialized, Xizhou feels more authentic and laid back.

One of the highlights of coming here is the food. Xizhou is famous for its Xizhou Baba (喜洲粑粑), a round flatbread baked in clay ovens that you’ll see being sold on almost every corner. The savory version is stuffed with minced pork, scallions, and spices, while the sweet version usually has brown sugar or rose jam inside.

Walking through Xizhou’s quiet streets and traditional courtyards gives you a glimpse of what Dali must have felt like before tourism took over.

A day trip to Shaxi (沙溪)

Halfway between Dali and Lijiang lies Shaxi (沙溪), one of the best-preserved old towns along the ancient South Silk Road, also known as the Tea Horse Road. Unlike many other historic towns in Yunnan, Shaxi has retained much of its original charm without being overrun by too many large tour groups or heavy commercialization (although even there, the situation is changing, unfortunately). Walking through its cobbled streets, you’ll notice traditional Bai and Yi architecture, quiet courtyards, and small family-run shops that feel far more authentic than what you often find in the bigger tourist hubs.

The town was once an important stop for mule caravans transporting tea, salt, and horses between Yunnan, Tibet, and beyond. Today, it’s a place where you can slow down, explore at your own pace, and really sense that connection to history. The Friday Market is still a big event, when villagers from the surrounding countryside come to town to sell produce and handicrafts, creating a lively scene that has been going on for centuries.

If you have enough time, don’t miss Shaxi. Spending at least one night allows you to enjoy the old town in the early morning and evening, when the day-trippers are gone and the atmosphere is at its best. But if your time is limited, you can spend just a few hours there. The Old Town is pretty small. Here you can find my full Shaxi travel guide.

Final considerations and tips

Dali is one of those places that many people coming to Yunnan dream of visiting, and for good reason. The setting between Cangshan Mountain and Erhai Lake is stunning, the Bai culture is unique, and the surrounding towns like Xizhou and Shaxi add real depth to the experience. At the same time, I think it’s important to be honest. Dali Old Town has become heavily commercialized, and if you’re expecting a quiet, untouched village, you may feel a bit disappointed by the number of shops and tourists.

That said, if you manage your expectations, Dali still has much to offer. Spend some time outside the Old Town, cycle around Erhai, and explore smaller Bai villages, and you’ll quickly see a different side of the region. For me, Dali remains a worthwhile stop on any Yunnan itinerary (here are a few more ideas), but it shines most when you use it as a base to go a little further and discover the hidden gems nearby.

If you want to try a unique experience and take a study holiday in this beautiful city, I recommend this school, the same one where I studied when I moved to China: [email protected].

To conclude, get a VPN before visiting China. Otherwise, you will lose access to all social media and Google, including Gmail. If you need an eSIM, you can use this one. As for travel insurance, I recommend this one.

Here are more pictures I took in Yunnan. Here is my complete travel guide to China, and here is my two days guide to Shangri-La. If you want to explore a less touristy area, I recommend Western Yunnan.