Modern Harer surrounds the old capital, which is Ethiopia's only walled city. The ancient walls, with six gates, enclose a crowded Muslim town with alleyways that wind to a central marketplace. Outside the walls, the city spreads across the plateau and is characterized by northern Ethiopian and European architecture. Because of ritual differences in slaughtering, separate Muslim and Christian marketplaces are maintained. Local, diversified agriculture is supplemented by oilseed pressing and the processing of sansevieria fibre.
Basket weaving is a commercially important craft, as is the production of silver jewelry.
The Harer Military Academy is situated in the town.