The entertainment situation in Lijiang is pretty similar to that in Dali. The development of a foreign-oriented tourism industry, means that the city now boasts numerous good bars and cafes, set amidst a rich cultural atmosphere. Most of the bars and cafes here are located in the old town and are frequented by foreign visitors. Many function as restaurants and bars and, most importantly, as travel information centers. The bars are generally located along the Yuhe River which meanders its way through the old town. The Sakura Cafe, the Well Bistro, and the Sun Room Cafe are all currently popular.

While the bars and cafes are good fun, any visit to Lijiang should include a Naxi Ancient Music Concert. The Naxi Ancient Music Institute is the best place to experience this, although the Dongba Palace opposite the institute also hosts numerous cultural activities and music performances.