The Naxi (Nakhi) people inhabits the foothills of the Himalayas in Yunnan Province and the southwestern part of Sichuan Province. The Mosuo near Lugu Lake are part of the Naxi people. The Mosuo have aspects of a matriarchal culture. The Naxi are traditionally followers of the Dongba religion. Influenced by both Han Chinese and Tibetan culture, they adopted Tibetan Buddhism (especially the Mosuo).

The houses of the Naxi are built in a unique style of one courtyard with five skylights and patterned doors. The temples are decorated on the interior with carvings on poles, arches and idols of gods. The mural paintings depict Dongba gods, and are derived from Tibetan styles.

The traditional Naxi women wear is wide-sleeved loose gowns, jackets and long trousers, tied with richly decorated belts at the waist, and large black cotton turbans accompanied with big silver earrings. The men's costumes are much like that of Han Chinese. An important Naxi festival is the Sanduo Festival, held on February 8, when the camellia flowers are in full bloom. Sanduo is the Naxi god of war or protection and the festivities to honor him are held on the grounds of a temple at the foot of the Jade Dragon Snow Mountain in Yunnan.