Gamla Stan, The Old Town, consists primarily of the island Stadsholmen. The town dates back to the 13th century, and consists of medieval alleyways, cobbled streets, and archaic architecture. North German architecture has had a strong influence in the Old Town's construction. Gamla Stan is one of the best preserved old towns in Northern Europe.

The center of Gamla Stan is Stortorget, the scenic large square, which is surrounded by old merchants' houses including the Stockholm Stock Exchange Building. The square was the site of the Stockholm Bloodbath, where Swedish noblemen were massacred by the Danish King Christian II in November, 1520. The following revolt and civil war led to the dissolution of the Kalmar Union and the subsequent election of King Gustav I.

As well as being home to the Stockholm Cathedral, the Nobel Museum, and the Riddarholm church, Gamla stan also boasts Kungliga slottet, Sweden's baroque Royal Palace, built in the 18th century after the previous palace Tre Kronor burned down. The House of Nobility (Riddarhuset) is on the north-western corner of Gamla stan. The restaurant Den gyldene freden is located on Österlånggatan. It has been in business since 1722 and according to the Guinness Book of Records is the oldest existing restaurant with an unaltered interior. A statue of St. George and the Dragon (sculpted by Bernt Notke) can be found in the Stockholm Cathedral, while Riddarholmskyrkan is the royal burial church. Bollhustäppan, a small courtyard at Slottsbacken behind Finska kyrkan, just south of the main approach to the Royal Palace, is home to one of the smallest statues in Sweden, a little boy in wrought iron. The plaque just below the statue says its name Järnpojken ("The Iron Boy"). It was created by Liss Eriksson in 1919.

From the mid 19th to the mid 20th century Gamla stan was considered a slum, many of its historical buildings left in disrepair, and just after World War 2, several blocks together five alleys were demolished for the enlargement of the Parliament. From the 1980s, however, it has become a tourist attraction as the charm of its medieval, Renaissance architecture and later additions have been valued by later generations.

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Fisherman's Bastion

Fisherman's Bastion is a terrace in neo-Gothic and neo-Romanesque style situated on the Buda bank of the Danube, on the Castle hill in Budapest, around Matthias Church. It was designed and built between 1895 and 1902 on the plans of Frigyes Schulek. Construction of the bastion destabilised the foundations of the neighbouring 13th century Dominican Church which had to be pulled down. Between 1947–48, the son of Frigyes Schulek, János Schulek, conducted the other restoration project after its near destruction during World War II.

From the towers and the terrace a panoramic view exists of Danube, Margaret Island, Pest to the east and the Gellért Hill.

Its seven towers represent the seven Magyar tribes that settled in the Carpathian Basin in 896.

The Bastion takes its name from the guild of fishermen that was responsible for defending this stretch of the city walls in the Middle Ages. It is a viewing terrace, with many stairs and walking paths.

A bronze statue of Stephen I of Hungary mounted on a horse, erected in 1906, can be seen between the Bastion and the Matthias Church. The pedestal was made by Alajos Stróbl, based on the plans of Frigyes Schulek, in Neo-Romanesque style, with episodes illustrating the King's life.