The town's premier sight is the commanding Loka castle, overlooking the settlement from a grassy hill west of Mestni trg. It dates from the 13th century and was extensively renovated after an earthquake in 1511. Today the castle houses the Loka Museum, which boasts an excellent ethnographic collection spread over two-dozen galleries on two floors. Exhibits run the gamut from taxidermied animals to church frescoes by way of local painters, lace-making traditions and WWII partisans; English labelling can be patchy for some exhibits.
In the garden, you’ll find a typical peasant house from nearby Puštal dating from the 16th century. Don't miss the four spectacular golden altars in the castle chapel. These date from the 17th century and were taken from a church destroyed during WWII in Dražgoše, northwest of Škofja Loka.
Two paths lead up to the castle from the Old Town; one starts just opposite Kavarna Homan, the other next to Martin House. A longer walking trail, the Three Castles Path, begins at the castle and travels a circular, forested path for about 5km (two hours), past the ruins of the Krancelj Tower and the Old Castle. The TIC has a brochure with map.