McLeod Ganj is full of shops selling curios, books, or trekking gear and unlikely combinations like "laundry and bakery." You can buy reasonably priced Tibetan rugs and handicrafts from the Tibetan Handicraft Centre (near Post Office, Jogibara Rd.; tel. 01892/22-1415) and the Tibetan Children's Village Handicraft Centre (tel. 01892/22-1592). Stitches of Tibet (Temple Rd.; tel. 01892/22-1198 or -1527) is an enterprise that trains local women in handicraft production. Their shop stocks the completed handicrafts as well as Tibetan clothing. If you want to buy a traditional Tibetan thangka (painted or embroidered banner or wall decoration), the Norbulingka Institute is where this art is preserved and taught; they also take orders. Shop at the institute or at Chonor House, knowing that your purchase will actually contribute to the development of Tibetan craftsmanship. For books, visit Namgyal Bookstore in the temple complex; its excellent collection focuses primarily on Tibetan culture and Buddhism, but it has a good number of beautiful publications on Himachal Pradesh and other Himalayan regions as well. Also filled with an interesting assortment of books on the history, culture, and art of the region is Youtse Book Shop (Mount View Complex, Temple Rd.). Finally, don't miss stopping at Nowrojee Store (near the Bus Stand), run for six generations by a Parsi family, one of whom is said to have been the person who encouraged the Dalai Lama to settle here in 1959. This quaint place is worth a visit for its history alone, if not to pick up some interesting knickknacks.
Tip: If you're looking for cash, an SBI (State Bank of India) ATM is located on the main street of McLeod Ganj, while ICICI and HDFC banks operate in lower Dharamsala. For changing or transferring foreign exchange, you can use Thomas Cook (next to SBI) or any of the Western Union outlets.
