Old Town of Lijiang was founded in the late Southern Song Dynasty. The rise of Mongolia in the Southern Song Dynasty also established a powerful national Mongolia. After the establishment of Great Mongolia, it never stopped conquering foreign countries. After successively annexing the Western Liao Dynasty and the Jin Dynasty, Mongolia began to take the Southern Song Dynasty as its next annexing target. In Borgikin? Under the leadership of Meng Ge, Great Mongolia successfully conquered the Southern Song Dynasty. However, the regime in the Southern Song Dynasty did not completely die out, and some children of the royal family fled to the south to establish an exile regime.

Just like Mongolia attacked the Southern Song Dynasty, the leader of Lijiang in the south moved his ruling center to Lion Mountain to avoid the war. At that time, Lijiang was led by Mushi, and there was a place in Old Town of Lijiang called? Mufu? The scenic spot is Mu's residence. Because of the shift of political center, they need to rebuild houses and cities around Lion Mountain. This city is today's Old Town of Lijiang. After Mongolia captured the Southern Song Dynasty, it continued southward, and Kublai Khan led an army to attack Dali under the command of Mongolian Khan. When he heard the news that Kublai Khan had arrived in Yunnan, the Mu family in Lijiang was worried that he would send troops to Lijiang, so he took the initiative to meet the surrender.

After Lijiang surrendered, Kublai Khan continued to March to Dali. Dali's strength is naturally not as good as Mongolia's, so it abandoned its troops and surrendered soon after the attack. Since then, the Yunnan-Guizhou Plateau has been incorporated into Mongolia. After the death of Mongolian Khan, Mongolia was divided because of internal contradictions, in which Kublai Khan occupied a part and established the Yuan Dynasty. After the establishment of the Yuan Dynasty, Kublai Khan led the army to annihilate the exiled regime in the Southern Song Dynasty, and thus became the first minority regime in the Central Plains. Lijiang, which originally belonged to Mongolia, has since become a part of the territory of the Yuan Dynasty.

In the subsequent development, there are more and more houses in Old Town of Lijiang. By the end of the Ming Dynasty, there were already thousands of families there. During the Yongzheng period, Lijiang ushered in the first official magistrate. After the magistrate took office, he built yamen, barracks and other places, and built walls around these places, which further expanded the scale of Old Town of Lijiang. Today, Old Town of Lijiang has become a representative scenic spot in Lijiang, and many tourists visit it every year.