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Baisha Ancient Town lies about twelve kilometers north of Lijiang's old town and holds particular historical importance as the original settlement site of the Naxi people in the Lijiang basin, as well as the birthplace of the Mu family who would later rule the region for centuries. Long before Lijiang Old Town grew into its current form, Baisha served as the area's early political and cultural center.

Today the town retains a notably quieter, more understated character than Lijiang's busier old town, with narrow streets and traditional buildings that have kept much of their old-world atmosphere. Its most celebrated feature is a set of Naxi murals dating to the Ming and Qing dynasties, prized for their blending of Han Chinese, Tibetan Buddhist, and Naxi artistic and religious influences, offering a rare window into the region's layered cultural history. Wandering the town's simple streets, visitors get a sense of daily life away from the more commercialized parts of Lijiang.

Because Baisha is smaller and less visited than the main old town, it typically takes a couple of hours to explore at an easy pace, including time to view the murals and stroll the surrounding lanes. The relative quiet makes it appealing for visitors seeking a more contemplative experience of Naxi heritage.

Given its location just north of central Lijiang, Baisha Ancient Town is often visited as part of a half-day trip that also includes nearby sights such as Jade Dragon Snow Mountain or Yuhu Village, making efficient use of the drive out from the old town.