As the royal capital of Laos, Louang Phabang was traditionally a magnet for skilled artisans from around the former kingdom and the traditional arts have been experiencing a revival since the tourism boom. Most of the town's souvenir shops are on Xiang Thong Road , especially in the neighbourhood known as Ban Jek, between the Royal Palace and the secondary school. The other good place to look is Talat Dala , the dry goods market on Setthathilat Road.

Although Thai antique dealers have made off with quite a bit of old Lao silver , items still worth looking out for are paraphernalia for betel chewing: round or oval boxes for storing white lime, cone-shaped containers for betel leaves and miniature mortars used to pound areca nuts. Hilltribe silver jewellery is usually bold and heavy - the better to show off one's wealth - and most is the handiwork of the Hmong tribe. The antique brass weights known as " opium weights " are also well represented in the silver shops. Weights cast as birds, elephants and lions are an established collectable and can command high prices, but simpler designs are more reasonably priced. New silver of superior quality should be bought directly from Louang Phabang's expert silversmiths . The best-known of these is Thithpeng Maniphone, whose workshop is located just down the small lane opposite Wat That. Other silversmiths are located near the Royal Palace and opposite Wat Aham.

Lao Antique Textiles Collection (on Xiang Thong Road, opposite Wat Mai) has an excellent selection of unusual and antique textiles , starting at $20. New textiles are cheapest at Talat Dala where nyam - shoulder bags - and the all-purpose pha khao ma, a chequered, wrap-around sarong used by Lao men, are almost given away. Lao woodcarving is traditionally religious in nature, and Buddha images can be found everywhere, but these are now supplemented by souvenirs such as carved wooden hangers for displaying textiles. Ban Khili (opposite Wat Sop) offers a good selection of originally designed traditional mulberry paper lanterns , including collapsible models.