This is one of my favourite places in the whole of China. It's laid back, chilled, the scenery is beautiful. What more could you want. Take a boat down the river, hire a bike and go cycling around the country lanes, climb some karst peaks. The town itself has some great shops, markets and places to eat, drink and stay. Top place!

Try and find your way to Yangshuo Mountain Retreat, a laid back and inexpensive hotel on the banks of the river. http://www.yangshuomountainretreat.com/ If you are feeling adventurous, they will book you a Hot Air Balloon trip over the mountains for tha bargain price of 600Y (£80)!

This place is very touristy and everyone speaks English. It is also very different than rural China since it depends so much on foreign tourism, but if that's what you're looking for, it'll be nice. They have cheap lodging, cheap food and cheap souvenirs. I recommend the bamboo rafting!

Yangshuo is a wonderful town, but everyone know it so that it is full of tourists, wake up early to see how peaceful can be west street, and watching the town waking up, boatmen, fishermen and birds... You will see wonderful sceneries there but most of the time electric wire will cross the pictures you wants to take

I advise to stay in the Backstreet Youth Hostel a YHA it costs only 20 RMB a night if membership, clean and dry sheet clean room, you can take your breakfast you had previuously buy on the roof and watching the mountains all around you... Magic I stayed also in Monkey Jane, but it was not as good except the roof also (the room was very wet, sheet floor...)

full of the western-lot. rent a bike, get away and ride for hours. you'll realize how small you are in this world once surrounded by huge jagged mountains and endless rice paddies.

Toppie place. Go have dinner at Chris's place in the center of town. Great fish soup and baquettes. and ofcourse a bike ride is a must and the boat trip on the Li river.

Have dinner at "The Blue Lotos"!

Rent a bike in Yangshuo village and cycle to Yulong River.
Dragon River Valley is said to rival Li River Scenic Area in beauty and prestige. There is a bike path that leads from Fuli Bridge in Baisha, which is north-west of Yangshuo town that leads all the way along Dragon River to the south-west entrance back into Yangshuo. This trip will take at least half a day and is filled with some of the most beautiful scenery you will see in Yangshuo. On the way back to the town take Bamboo raft drifting is a lovely way to explore this scenic spot and very relaxing after a bike ride.

Get a bicycle and explore the surroundings!