Travelling north from Lake Sevan, the road climbs and then descends through spectacular gorges to the spa town of Dilijan. Surrounded by a heavily forested area of mountains, Dilijan is a popular resort town, famous for its mineral water and the surrounding countryside is home to a great variety of fauna, such as brown bear, wild boar, fox, marten, as well as 240 species of birds. The 19th century quarter of Dilijan has been restored with some fine two storey mansions and workshops. There is also a museum and gallery.

Near Dilijan are some of the most interesting monasteries and churches in Armenia, including Hagartsin Monastery set in a scenic valley beside a stream. This includes the church of St. Gregory (10th century), The church of St. Stepanos built in 1244 and the refectory where visitors and pilgrims were received. It is possible to visit Lake Sevan and Dilijan on a long day trip from Yerevan.