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Napoleon once remarked that if the world were a single state, Istanbul would be its rightful capital. The Turkish city's fortunes have risen and fallen on the tides of empire, being last demoted when Ankara became the capital of the newly founded republic in 1923. But 2,700-year-old Istanbul is used to comebacks, and today the city is enjoying a massive revival, thanks to a deft mix of old and new. Driving toward the city center from the new airport, you pass through 5th century walls built by Emperor Theodosius II. Downtown, Roman, Byzantine and Otto-man ruins jostle next to trendy clubs and restaurants. Just around the corner from a five-star hotel is one of the city's cacophonous street markets.

For most Turks, Istanbul will always be the capital. The port city boasts Turkey's best arts, culture and entertainment. Since the 1980s, tourism has been booming — it quickly rebounded from a brief slump after Sept. 11 — and the country's rapid economic liberalization has multiplied the options for visitors. Deluxe accommodation ranges from meticulously renovated Ottoman mansions to modern luxury hotels. A classy evening meal can be enjoyed at the renovated Maiden's Tower, which dates from the 6th century, or Changa, an oasis of minimalist chic serving up award-winning fusion cuisine.

	STREETWISE BEST BATH For the full body experience of the hammam, or Turkish bath, head for the 300-year-old Cagaloglu Hammam, whose roster of famous guests ranges from Florence Nightingale to Tony Curtis. Segregated baths for men and women. Kazim Ismail Gurkan Caddesi, 34, tel. +212 522 24 24 BEST KEBAB Meat-lovers can rejoice at Kosebasi Levent (pronounced Koshebashi), where Bill Clinton took his daughter Chelsea on a recent visit. Don't bother with a menu, sit back and let your waiter make the choices. Camlik Sokak, No. 15/3, tel. +212 270 24 33 BEST MUSIC Toward the Galata Tower is an area known as Tunel, a center for nightlife. Babylon is a favorite, and features everything from German electronica to Cuban rapsters to Turkish jazz. Check out what's on at www.babylon-ist.com. Seyhbender Sokak, 3, tel. +212 292 73 68 BEST CLUBS Istanbul's jet set kick up their well-shod heels at Leila and Reina, exclusive night-clubs with both summer and winter venues. Their summer spots on the Bosporus are among Europe's largest open-air discos, with a capacity of 3,000. Mooring services available for those arriving by yacht. Leila: Muallim Naci Caddesi, 44, tel. +212 259 5919. Reina: Muallim Naci Caddesi, 141/142, tel. +212 227 17 11

One of Istanbul's most notable landmarks — and the easiest way to orient yourself — is the Bosporus, the strait that divides the city, the fluid boundary between Europe and Asia. European Istanbul comprises the bulk of the city to the west, while the mostly residential Asian Istanbul is to the east. To get your bearings, take a ferry from the Eminonu docks up the Bosporus, stopping for lunch at one of the fishing villages near the Black Sea, passing a series of sumptuous villas and Ottoman houses along the way.

European Istanbul is itself divided by the Golden Horn, an inlet off the Bosporus. The Old City, or Sultanahmet, to the south of the Golden Horn, is where you'll find all the main sights, including the Topkapi Palace, the Blue Mosque, Hagia Sofia, the Hippodrome and the Grand Bazaar, a maze of some 4,000 shops. This small area is jam-packed with wonders and best explored on foot. Until recently, many treasures were locked away or poorly exhibited. But the city's museums are improving. Topkapi Palace contains carpets, jewels, ceramics and other imperial items. The Archaeology Museum next door houses important Roman and Byzantine artifacts. Also not to be missed are the nearby Museum of Turkish and Islamic Arts and the Byzantine mosaics in the former church at Kariye, among the finest surviving examples of this art form.

A short walk across the Galata Bridge to Taksim Square brings you into the bustling heart of the modern city. Cafés, bookstores, cinemas and clubs are located along pedestrianized Istiklal Street, just off the square, where society swells rub shoulders with street urchins. Choose one of the many bars and cafés, from funky student hangouts to the ultra-hip, four-story Nu Pera complex, which houses a bar, a nightclub and a restaurant. Stop off at the Fish Market here

• PELIN TURGUT
• Istanbul has sleek, modernist hotels and clubs, and an ancient soul