The historical background of Old Town of Lijiang can be simply summarized as follows: Old Town of Lijiang was established under the leadership of Mu ancestors in past dynasties. The architectural history of "Lijiang people" has developed from the ancient cave house, tree nest house and well-dried wooden box house to the ancient city residential model of "three squares and one wall", "four entrances and five patios" and "from horse to attic". The plane feature of the ancient city dwellings is the courtyard-centered, introverted courtyard combination, and Xia Zi is an important part of the Naxi nationality dwellings.

In A.D. 1254, the ancestor of the Mu family in Lijiang joined Kublai Khan and set up three official posts in the ancient city. Its organizational system is subordinate to Chahan Zhang Guanmin's official position. In A.D. 1276, it was changed to Lijiang Road Military and Civilian Headquarters. In A.D. 1382, A Jia, the magistrate of Tongan, joined the Ming Dynasty and established Lijiang Military and Civilian Mansion. The military residences in Old Town of Lijiang and Lijiang (Mujiayuan) are unique and magnificent, and they are also the symbols of the politics, economy and power of the Mu family at that time. Xu Xiake, a famous traveler in China in the Ming Dynasty, once wrote in Lijiang Travel Notes: "The beauty of the palace is that it is king" and "residential quarters are full of tiled houses".

It is a true portrayal of the prosperous landscape of Old Town of Lijiang in those days. Naxi people are good at absorbing and drawing lessons from foreign cultures, because Lijiang is located at the port of the Southern Silk Road, on the ancient tea-horse road. It is a distribution center for Yunnan-Tibet trade.

From A.D. 1253, Kublai Khan stationed in Lijiang brought foreign culture, and was later influenced by Tibetan Buddhism, Taoism and other Central Plains cultures, and was also influenced by Christian culture until the beginning of the 20th century. In addition, the ancient Dongba religion, Dongba Sutra, Dongba hieroglyphics, Dongba paintings and the ancient music of Naxi Cave Sutra, known as the remains of Yuan people, were added. All these can be eclectic and coexist. These cultural influences have added the connotation of Old Town of Lijiang.

The beauty of the ancient city lies in the nature and harmony of its geographical environment. 30 kilometers northwest of the ancient city is the Yulong Snow Mountain and the remains of the fourth glacier, with an altitude of 5596 meters, which has not been conquered by human beings.