One of the rare Tibetan old towns in China, the history of the town can be dated back to the 8th century when Shangri-La was controlled by the Tubo Kingdom (Tibet).

Small as it is, the old town is quite different from others in Yunnan, and full of Tibetan cultural facts such as Buddhist paintings and Tibetan residences side by side. A cobble path, not so crowded as Lijiang, will guide visitors to the Daguishan Hill where one can turn the biggest praying wheel in the world and take a birds-eye view of Shangri-La.