Luang Prabang is located in northern Laos at the heart of a mountainous region. The town is built on a peninsula formed by the Mekong and the Nam Khan River. Mountain ranges (in particular the PhouThao and PhouNang Mountains) encircle the city in lush greenery.

Many legends are associated with the creation of the city, including one that recounts that Buddha would have smiled when he rested there during his travels, prophesying that it would one day be the site of a rich and powerful city. Known as Muang Sua, then Xieng Thong, from the 14th to the 16th century the town became the capital of the powerful kingdom of Lane Xang (Kingdom of a Million Elephants), whose wealth and influence were related to its strategic location on the Silk Route. The city was also the centre of Buddhism in the region. Luang Prabang takes its name from a statue of Buddha, the Prabang, offered by Cambodia.

After the establishment of the French Protectorate in 1893, following a period of turmoil during which the country was divided into three independent kingdoms, Luang Prabang once again became the royal and religious capital during the reign of King Sisavang Vong. It played this role until Vientiane became the administrative capital in 1946.

Luang Prabang is exceptional for both its rich architectural and artistic heritage that reflects the fusion of Lao traditional urban architecture with that of the colonial era. Its remarkably well-preserved townscape reflects the alliance of these two distinct cultural traditions.

The political and religious centre of Luang Prabang is the peninsula, with its royal and noble residences and religious foundations.   The colonial urban morphology, including the network of streets, overlapped harmoniously with the previous model. Formerly the town limits were defined by defensive walls.

The richness of Luang Prabang architecture reflects the mix of styles and materials. The majority of the buildings are, following tradition, wooden structures.  Only the temples are in stone, whereas one- or two-storey brick houses characterize the colonial element of the town.  The many pagodas or "Vat" in Luang Prabang, which are among the most sophisticated Buddhist temples in Southeast Asia, are richly decorated (sculptures, engravings, paintings, gilding and furniture pieces).  Wat Xieng Thong, which dates from the 16th century, comprises an ensemble of the most complex structures of all the pagodas of the town.

The built heritage of Luang Prabang is in perfect harmony in the natural environment. The sacred Mount Phousi stands at the heart of the historic town built on a peninsula delimited by the Mekong and the Nam Khan, domain of the mythical naga. Ceremonies to appease the nagas and other evil spirits, and Buddhist religious practices (Prabang procession, the monks’ morning quest) perpetuate the sanctity of the place. Natural spaces located in the heart of the city and along the riverbanks, and wetlands (a complex network of ponds used for fish farming and vegetable growing) complement this preserved natural environment.