Lying along the Pai River, Pai is a small town in northern Thailand near the Myanmar border, north of Chiang Mai on the northern route to Mae Hong Son. The hill town of Pai is some 100km (63mi) west of the town of Mae Hong Son and was once a quiet market village primarily inhabited by Shan people, whose culture originated in Burma. As it lies at the feet of the mountains it's a good base for trekking and visiting hill tribes like Karen, Hmong and Lisu. Well-known among backpackers for its relaxed atmosphere, the town is full of cheap guest houses, souvenir shops and restaurants. In the proximity of the town are spas, and elephant-camps. Outside of town several hotsprings, natural and man-made, and a waterfall can be found. Another notable attraction is the region's famous Wednesday Market, occurring weekly, which can bring crowds of up to 10,000 local villagers through the course of one day.

Recently Pai has appeared on the Thai tourist map and has received major infrastructure upgrades including two 7-11, several small to medium-size resorts, a couple of live music clubs, beer bars and two traffic lights. This has done little to dampen the small and peaceful spirit of the town. However this has lead to a recent influx of farang (or Europeans) and Thais from the cities, as investors and land owners promises to bring Pai a new age of prosperity. At the expense of this prosperity, Pai has become primarily a tourist town where it is not uncommon to observe more western tourists than locals along the main street. A plethora of activities are available, including exploring the countryside by foot, motorbike, elephant or bamboo raft, while there's plenty to see.

The town itself is best explored on foot. For exploring further afield, bicycles (40-100 baht/day) and motorbikes (from 100 baht/day) can be rented from many agents along the main street. Motorbike taxis are also readily available.