Bahar Dar is located on the southern shore of Lake Tana and is an ideal base from which to explore the lake and surrounding area. Once no more than a sleepy fishing village it has grown in size during recent times and palm-lined avenues and lakeside vistas make it an attractive place to stay. There are good amenities for travellers and the town itself has become an important industrial centre partly as a result of the hydro-electric dam built at nearby Tis Abay.

From Bahar Dar it is easy to charter a boat to explore the churches and monasteries that are scattered about on some of the islands on the lake. Ura Kidane Merhet is particularly impressive, situated on a forested peninsular west of the town. Also nearby are the Blue Nile Falls or Tis Isat (water that smokes). Here the Blue Nile is 400m wide and plunges 45m down into a much narrower channel before continuing its journey.