Located a few kilometers east of Urubamba, Yucay is a peaceful town with a few interesting colonial homes and the restored colonial church of Santiago Apóstol. Inside the church, you'll find exquisite oil paintings and fine altars. The main square is divided by a large, grassy plaza where futból/soccer games are held. Facing the Plaza Manco II is the adobe palace of Sayri Túpac, who settled here after arriving from Vilcabamba in 1588.
In the hillsides near the town there are extensive Inca terraces, perfect for an afternoon excursion. Aside from the hotels clustered around the main square, there are few services in Yucay. One of Cusco's best-kept secrets is also located near Yucay. Huayoccari Hacienda Restaurant is an elegant, converted country manor perched on a ridge overlooking the Sacred Valley, about two kilometers outside of Yucay. In addition to walls decorated with colonial paintings and ceramics, and a rustic courtyard, the hacienda has some of the best cuisine in all of Cusco.