Today, Lijiang is known not only for its natural and architectural beauty, but also for its vibrant traditional culture. Ethnic groups in the area, especially the Naxi, have kept many of their old customs. Agriculture is still the area's main economic activity. Over many centuries, the Naxi have built terraced fields and an intricate network of irrigation and drainage canals. About 30 percent of Lijiang's residents are still engaged in traditional handicraft occupations and commercial activities.
Craftsmen make utilitarian items from copper, brass, silver, leather and fur.
Local textiles and wine are also produced. Naxi traditional music dates back to the Han dynasty. While this music is now forgotten in the rest of China, the Naxi have handed down the songs and playing skills from father to son over many centuries. Naxi musical groups still perform for tourists and play for their own enjoyment. The ancient Naxi written language is an extraordinary system of pictographs created 1,000 years ago.