The Tea Horse Museum is free and features an interesting selection of old photographs showing how treacherous the route must have been: Horses clung precariously to paths carved into cliff ledges and mules were harnessed to zip wires across raging torrents. In the top corner of the museum is a photo competition with the great inspiration for nearby hikes and day trips.
Look out for the small shop on the corner of Foggy Willow Road that is a mini Madame Tussauds devoted to just one man. A wax model of the Great Helmsman relaxes with a cigarette so that visitors can dress up in blue fatigues and have the pictures taken with him. The ladies that have the ponies usually also have a dressed-up yak that makes for a fantastic souvenir picture with the Jade Dragon Peaks in the background.
Stone Lotus Temple, where the indoor shrine is rather cramped, has a very pleasant courtyard where the jingling of bells and hillside birdsong is very relaxing. Dajue Palace is part of the Shuhe Yard buildings of the Mu Family containing six frescoes, similar to those at Baisha. While the main square Sifang Jie has turned into a car park for local minibuses offering ¥5 rides back into Lijiang Old Town, the 15th century stone Qinglong Bridge has become a preferred meeting point. About 100m (328 ft.) north of the Shuhe Square Market (Sifang Jie) is the Jiuding Dragon Pool and Longquan Temple (Dragon Spring Temple). The water is clean and transparent and the fish are untouched by the locals who believe them to be spirits of the gods. Further along, next to Dragon Pool is the Sansheng Palace temple that commands excellent views of the area.
Just a 30 minute climb out the village up past Treasure Mountain is a lush green pasture, with thick spongy grass and carpets of wildflowers. Avoid the cliff climb and take the more circuitous route. Go up on the road past the Caffeine Club or behind the guesthouses on Hongzi Lu (Red Leaves Alley). Look out for the cacti on the wall to the left, a Naxi-style security alternative to barbed wire or broken glass and then make your way up to the ledge that is directly above you. This is a great place for a picnic or just to spend the afternoon lolling about.