The Dai ethnic minority is distributed in Xishuangbanna, southern Yunnan Province. They have established a close relationship with ethnic groups like the Zhuang, Dong, Shui, Bouyei and Li, who are said to be the descendants of the Dai people. Pu'er Tea (Pu-erh, Puer Tea) is the most famous product in Xishuangbanna and is sold to Japan and other countries all over the world. Now the Dai region has become an important producer of rubber.

Peacock Dance is Dai people's most popular folk dance. Performers in clothes with peacock patterns imitate peacocks lively and gracefully. The most important Dai festival, Water-splashing Festival, is the New Year of the Dai. People splash water to each other and race dragon boats, hoping to pacify evil spirits and ensure a good harvest in the coming year.

The architecture of the Dai region is known for the Dai-style temples, bamboo bridges and houses. Temples combine the styles of South Asian and Chinese culture and are shaped like pavilions, thrones, bells and so on. Bamboo houses are designed based on local conditions, having two floors, downstairs for livestock and upstairs for people.