Old Town

The Old Town, with charming cobblestoned streets and colorful houses, is one of the most polished neighborhoods in Budapest (and while many are private homes, every house has a plaque that describes its origins). After touring the Royal Palace area, with the Hungarian National Gallery and Matthias Church, walk to the Old Town for excellent restaurants like Café Pierrot and Ruszwurm.  In summer, the little cafés spill onto the sidewalks, creating a relaxed ambiance (but beware of the many tourist traps).