Antiques hunting has been a major draw to Melaka for decades. Distinct Peranakan and teak furniture, porcelain, and household items fetch quite a price these days, due to a steady increase in demand for these rare treasures. The area down and around Jalan Hang Jebat and Jalan Tun Tan Cheng Lok called Jonker Walk sports many little antiques shops that are filled with as many gorgeous items as any local museum. You'll also find handmade crafts, ready-made batik clothing, and other souvenirs. Whether you're buying or just looking, it's a fun way to spend an afternoon.
For crafts and souvenirs, you'll also find a row of shops along the lane beside Stadthuys. Most prices seem fair, but you may need to do a little bargaining.