Calle Delfines is Sayulita's most photographed street — a short stretch of cobblestone lined with restaurant tables, boutiques, and hundreds of colorful flags (papel picado) strung overhead between the buildings. It's often referred to locally as "Flag Street," and the visual effect on a sunny afternoon is cheerful to the point of being slightly unreal.
The street runs east from the beach, one block north of the plaza, and concentrates several of the town's better-known restaurants including Barracuda. The combination of flags, restaurants, and foot traffic gives it the feel of a permanent outdoor party, which is either exactly what you want from a Mexican beach town or precisely what you want to escape.
Even if crowds aren't your thing, Calle Delfines is worth a slow walk. The architecture behind the flags is interesting — colonial-era proportions adapted for tropical climate — and the side alleys that branch off it lead to quieter territory within half a minute.