Thibaw (formerly known as Hsipaw), once the centre of a Shan State, is a small, peaceful with relaxed atmosphere. This small town is situated between Mandalay and Lashio. Its residents are mostly Shan and the town itself is rather unsophisticated and enjoys moderate climate. Thibaw is small enough to roam about on foot, and most of the travelers who are not in a hurry like to its simple and ambience atmosphere. As the place gradually becomes a popular hangout amongst the foreign travelers, the numbers of lodgings are now increased as well.

Sunset watching at Five Buddha Hill or Nine Buddha Hill is another recommended pastime. Both hills are about 2km out of town and are accessible by bicycle.

The Bawgyo Pagoda, 8km out of town in the direction of Mandalay, is a revered Shan pagoda. In addition to the usual complement of Buddha's, the pagoda also has some ancient statues of Hindu origin in the plaza outside.