Discover the Best Small Mountain Town in America: Waterfalls, Fall Foliage, and Top Southern Resorts

According to legend, Highlands, North Carolina, was formed in 1875 after developers in Kansas pulled out a map and drew two lines, one from New Orleans to New York and another from Chicago to Savannah. These routes were expected to become critical for trade, and the intersection was envisioned as a hub for commercial activity. Highlands never transformed into a bustling city center; however, the original predictions weren’t too far off — Atlanta is a little over two hours away.

Situated within the Nantahala National Forest at the highest crest of the Western North Carolina plateau, the area now known as Highlands was a hunting ground for the Cherokee. It was settled by people from around the U.S. in the late 1800s. Consequently, driving distance from major cities in the Southeast — including Charleston, Nashville, and Charlotte — modern-day Highlands serves as a summer retreat for those looking to escape the humidity, along with being a year-round haven for hiking, waterfall spotting, art, music, and exceptional dining and hospitality experiences.

Recently, the 1,088-person town was featured three times in the 2023 World’s Best Awards, with Old Edwards Inn and Spa, Half-Mile Farm, and Skyline Lodge each earning a spot on the list of the best resorts in the South. The team behind Highlander Mountain House, which opened its doors in late 2020, is also making strides in the area’s hotel scene, with plans for a full transformation of The Wells Hotel in the coming months. In early October, the property will debut as The Outpost Inn, a 14-room motel that owner Jason Reeves describes as an “immersive, peaceful experience” and a “basecamp to the outdoors.”

Highlands embodies the quintessential mountain town characteristics — a slower pace, access to natural beauty, outdoor activities, and a charming Main Street filled with local shops and restaurants. Moreover, it’s unique in its remote yet accessible location and its residents’ exceptional ability to blend avant-garde ideas with nostalgia and a strong sense of place. Read on to discover what makes Highlands, North Carolina iBestTravel’s best small mountain town of 2023.

The Best Times to Visit

Fall here is breathtaking, featuring every color leaf imaginable.

— Vivian Littlejohn, Half-Mile Farm

Given its location in the Blue Ridge Mountains, Highlands stands as a prime spot for witnessing fall foliage at its finest. “Fall here is breathtaking, with every color leaf you can imagine,” says Vivian Littlejohn, who manages guest services at Half-Mile Farm. Summer is also an idyllic time to visit Highlands, as the weather tends to be near-perfect. “It is lush and green, but we also enjoy lower summer high temperatures and humidity than the rest of the South,” adds Littlejohn. This season also marks the annual Highlands-Cashiers Chamber Music Festival and the town’s outdoor concert series occurring on Friday and Saturday evenings from May through October.

Things to Do

Breathe in the mountain air on a hike.

“There are numerous hikes suitable for every level, in and around Highlands,” shares Maggie Braucher, a Southeast-based wedding photographer who grew up spending her summers in Highlands and frequently returns with family. “One of Highlands’ most popular hikes is Whiteside Mountain due to its accessibility and breathtaking views — expect to encounter many families and groups enjoying the same trek.” For those seeking a path that’s “a bit more off the beaten path,” she suggests Chinquapin Mountain Trail. “You can stop by the Highland Hiker on Main Street for recommendations and to obtain a hiking guide, along with any other supplies you may need,” she adds. If you prefer to hike with a guide, Highland Excursion offers private hikes and tours across the region.

Travelers wishing to remain in town yet still get their steps in can enjoy the Highlands Plateau Greenway, a loop of trails connecting various historic, cultural, and natural sites in Highlands.

Spend a day chasing waterfalls.

Highlands is technically situated in a temperate rainforest, one of only two in the United States. Consequently, the annual rainfall averages around 80 inches; combined with granite mountains and hollows, this creates an excellent environment teeming with waterfalls. Littlejohn suggests visiting several while in town, noting that there are seven waterfalls within immediate proximity to Highlands, with Bridal Veil Falls, Glen Falls, and Dry Falls being three of the most popular.

Attend Highlands Food & Wine Festival.

This year marks the seventh edition of the Highlands Food & Wine Festival, a four-day event “dedicated to celebrating the food, wine, music, and culture of the Blue Ridge Mountains.” This year’s thoughtfully curated festival will take place from Nov. 9 through 12, featuring acclaimed chefs, wine and spirits tastings, and live music performances. Notable headliners in 2023 include End of the Line, Grace Potter, and The War & Treaty. In addition to the festivities, a portion of the ticket proceeds will benefit local preservation and conservation organizations, supporting the Louis Osteen Legacy Scholarship for local students pursuing careers in the culinary arts.

Visit The Bascom.

Braucher recommends visiting The Bascom, identified as a “center for Visual Arts.” Guests enter the campus via an 87-foot-long covered bridge built in the early 19th century. From there, visitors can tour current exhibitions, attend lectures, or participate in classes and workshops — including pottery, painting, garden design, and more, as outlined in the 2023 schedule.

Brush up on your fly fishing skills.

Fly fishing occupies a significant place on the to-do list for both Braucher and Littlejohn when visiting Highlands. Those unfamiliar with the sport or wishing to fish with expert guidance can arrange a trip with Brookings Anglers, whose guides offer half-day and full-day adventures throughout the region.

Where to Stay

Highlander Mountain House

Highlander Mountain House has quickly established itself as one of the most sought-after accommodations in Highlands over its three-year existence. Described as a combination of an Appalachian lodge and a refined English country estate, its rooms boast Bellino linens, Malin + Goetz toiletries, curated vintage decor, and charming wallpaper. However, the common spaces are the true highlights of Highlander Mountain House. “If it’s winter, I’d get cozy by the fire with a good book and a drink,” recommends Braucher, suggesting the kilim sofa in the hotel’s main lobby as a perfect spot to relax.

Old Edwards Inn and Spa

Old Edwards Inn and Spa exemplifies a historic hotel that balances a storied, special ambiance with refreshing modernity. Serenity can be found throughout the 84-room, multi-acre Relais & Chateaux property, but the award-winning spa stands out as an epitome of relaxation. Guests are encouraged to bring a book and enjoy a cup of tea before or after their treatment while savoring some quiet moments on the oversized chaise lounges in the solarium.

Half-Mile Farm

The sister property to Old Edwards Inn, Half-Mile Farm offers a “Napa-style setting and inn” spread across 14 acres of North Carolina’s stunning landscape. This romantic retreat is for adults only, located just outside downtown Highlands. Each guest room and suite can be characterized as rustic-chic, featuring luxurious touches, albeit with varying experiences depending on whether you choose to stay in the historic inn, courtyard, cabin, or one of the Woodland Suites; the latter provides fireplaces, heated marble bathroom floors, soaking tubs, balconies, and wet bars.

Flat Mountain Farm

For a more private getaway, consider booking one of the two cabins — The Wren and The Kingfisher — at Flat Mountain Farm. With its transformation from a rhododendron nursery since the owners, Margaret and Chris Shutze, acquired it in 2019, it now functions as a micro-resort, capable of hosting up to 200 guests for weddings, rehearsal dinners, and major corporate events. “They put so much thought into each design element in their houses, and the expansive property is simply beautiful,” states Braucher.

Skyline Lodge

iBestTravel readers have awarded Skyline Lodge the title of the second-best resort in the South, a distinction achieved following its complete renovation in 2021. The 40-room boutique hotel thoughtfully blends its historical essence — originally designed in the 1930s by Arthur J. Kelsey, a protégé of Frank Lloyd Wright — with updated amenities and features, including its courtyard, fire pits, and the Oak Steakhouse restaurant.

Where to Eat and Drink

Mountain Fresh Grocery

All essential items can be found at Mountain Fresh Grocery, a specialty food and wine store located in downtown Highlands. If you’re gearing up for a busy hiking day, consider picking up a bacon, egg, and cheese biscuit for the road — or opt for a “dinner-to-go” when it’s time to head back home.

Four65 Bistro

Four65 Bistro is celebrated for its “woodfire pizza and atmosphere,” as noted by Braucher; however, the restaurant also serves fresh salads, cast-iron sandwiches, and rosé. When the weather permits, al fresco dining on the terrace is highly recommended.

Madison’s

“The truly unique, locally sourced items and elevated service” distinguish Madison’s Restaurant, according to Littlejohn. Situated within Old Edwards Inn, this fine dining establishment welcomes the public for both lunch and dinner, showcasing a menu that features delectable offerings such as braised short rib pasta, grilled octopus, and a bacon-wrapped sausage-stuffed pork chop.

Blue Bike Cafe

Open daily from 7 a.m. to 3 p.m. (excluding Sundays), Blue Bike Cafe offers an all-day menu featuring elevated brunch favorites — including cinnamon roll pancakes, biscuits and gravy, chorizo grits bowls, and caramel apple French toast.

SweeTreats

Although Highlands enjoys more tolerable summer temperatures than the rest of the Southeast, ice cream remains a popular choice at SweeTreats. “You can select your favorite flavor(s) and toppings, and they mix it up right in front of you. [It was] one of my favorite spots as a child,” reflects Braucher.

Highlands Farmers Market

Weekends in Highlands are enhanced by the farmers market, open most Saturdays from April through October. Guests can visit Kelsey-Hutchinson Park from 8 a.m. to 12:30 p.m. for baked goods, plants, local produce, and more.

Where to Shop

CK Swan

For a tastefully curated souvenir from Highlands, be sure to stop by CK Swan on North 4th Street, which features a lovely selection of home goods, art, jewelry, and more, as shared by Littlejohn.

Vivace

“I enjoy shopping at Vivace for clothing — they offer a mix of classic and trendy styles, appealing to both older and younger demographics,” notes Braucher. This women’s boutique is located on South 4th Street, just a couple of blocks from Old Edwards Inn and Spa.

Mountain Findings

Additionally, Littlejohn recommends visiting Mountain Findings, a thrift store and nonprofit where you can find a variety of unique items, including art, linens, and furniture.