Ita Thao is the main settlement of the Thao indigenous people on the south shore of Sun Moon Lake. The village has a small market selling Thao foods and crafts, and is the most direct point of contact with Taiwan's indigenous culture at the lake. The mochi (sticky rice cakes) sold at the lakeside stalls here are noticeably good and worth stopping for.
The Ita Thao Pier is the hub for boat tours of the lake, including trips past Lalu Island. From the pier you can take a 20-minute boat ride to the Shuishe Pier on the north-western shore or to the Xuanguang Pier near the Xuanzang Temple. The ferry system is a pleasant and practical way to see the lake from the water.