Yudanaka Onsen (湯田中温泉) has a long history as a hot spring resort, dating back hundreds of years like the neighboring Shibu Onsen. However, Yudanaka has seen more development, giving it a more modern atmosphere than Shibu Onsen. The atmosphere becomes more traditional as one walks upwards from the bottom of the gently sloping town, where the Yudanaka train station is located.
Yudanaka Station is the last stop along the Nagaden Nagano Line, so people traveling by train will first arrive in Yudanaka before exploring the rest of the Yamanouchi area. Right inside the station is the Kaede no Yu public bath, allowing visitors to start enjoying the area's hot spring water immediately upon arrival. There is a free footbath located just outside the station for travelers not quite ready to completely submerge in the water.
Near the top of the town and accessed by a flight of 112 steps is the Sekai Heiwa Kannon. The main feature is of the temple is its 25 meter tall bronze statue of Kannon, the goddess of mercy, which overlooks the town of Yudanaka. There are a couple more statues of Kannon in the main hall as well as in the annex at the base of the large statue representing the temples along the Saigoku 33 temple pilgrimage route in the Kansai Region.