Bloomington has an unusually diverse food scene for a small Indiana city, driven by the international student and faculty population at IU. Ethiopian, Tibetan, Korean, and Indian restaurants coexist with farm-to-table places and the usual American standards. Most of the good options are concentrated along Kirkwood Avenue and the blocks immediately north and south.
The Bloomington Community Farmers Market on the courthouse square runs Saturdays from April through November and is the best place to find locally grown produce, artisanal cheeses, and ready-to-eat food from vendors including several immigrant-owned businesses. It is genuinely one of the better farmers markets in the Midwest and worth arriving early.
Tibetan is the local specialty nobody outside Indiana knows about — Bloomington has the largest Tibetan exile community in North America, and the Tibetan restaurants on and near Kirkwood Avenue serve food you are unlikely to find anywhere else in the United States with this level of authenticity.