Dukezong, the Tibetan name for the old town, is a cluster of stone-paved lanes and Tibetan-Naxi timber houses on a low hill at the south end of modern Shangri-La. It is small — you can walk every lane in an hour — and after the 2014 fire it is also partly rebuilt, but the work was sympathetic and the texture has returned. The central square, with prayer wheels at one end and bars and tea houses around the edge, fills up in the evenings with Tibetan and Chinese visitors and the occasional dancing circle.
The Old Town is the centre of gravity of the town. Most of the better guesthouses, restaurants, and bars are here or within a few minutes' walk. The walk up to the Great Prayer Wheel and Guishan Temple, at the top of the hill above the square, is short but steep — bring water at this altitude.