Pai is a meeting place for travelers and hippies (some have even been living there for years!) There are more tourists than locals there, and the village's atmosphere reflects this - it's not really typical of what you expect to see when you are on holiday in Thailand.
There is a market every day on Pai's main street. I ate some delicious dishes and excellent desserts at really low prices. There are also lots of bars and restaurants with original decor to chose from. There is a party atmosphere in the evening.
Around Pai I visited really hot springs (80° ) and a huge, recently built Buddha. Along the road the countryside was magnificent.
Pai is an essential stop on the famous Mae Hong Son Loop and a destination which, though undeniably touristy, lends itself completely to rest and relaxation. Be sure to stop at one of the many Thai massage stands and to take advantage of the cookery and massage lessons available.
I recommend getting a little out of the town. either by bike, by hitchhiking or through a local agency, so that you can explore the surrounding landscapes, which really are worth the excursion. The canyon located just outside Pai as you head towards Chiang Mai is the perfect place from which to admire the sunset: a spectacle not to be missed! When you get up into the heights above the town you come across a charming Japanese village offering magnificent views.
In the evening, I suggest browsing the night market, where you can find all kinds of mouthwatering typical local dishes at quite decent prices. Afterwards, there are numerous bars to visit where concerts and fire shows take place. There is accommodation available to suit all budgets, and you can to spend a night in a bungalow for very little money.