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Welcome to gorgeous, sophisticated Sydney, Australia-the most vibrant harbor town in the world.

As you fly into town, it looks like the Emerald City of Oz, fronted by the white "wings" of the audacious Sydney Opera House and the modern spires of the downtown area's high-rise buildings. From the shoreline, you'll see a dreamscape of shimmering aquamarine coves, beaches protected by shark netting, rocky islets and armadas of sailboats scudding like flower petals across the jade-green waters. When you see Sydney for the very first time, "you'll be gobsmacked fer sure, mate," as the Aussies would say.

While many first-time visitors book package tours of Australia that shoehorn them into frantic glimpses of Sydney, Ayers Rock and the Great Barrier Reef, wise travelers will find more relaxed romance by spending a full week in Sydney. If you do, you'll surely be seduced by the city's own blend of natural and urban, and you'll have plenty to explore. Read on for the best ways to see the sights on land and from sea and air, and our overall picks in this fantastic city.

Cruising Along

In a city with such a striking harbor, it comes as no surprise that there are dozens of options for cruise tours. Our choice: the three-hour romp on the Spirit, the sleek racing yacht that competed in the America's Cup Challenger Trials in 1992. Passengers can help the crew, or just kick back and feel the speed as she threads her way among the weekend regattas that fill the harbor with white sails (sailaustralia.com.au).

In Style

If classic elegance is more your speed, splurge on an intimate, three-hour private excursion aboard the Italian wooden speedboat La Dolce Vita. Handmade in Italy, the 24-foot, laminated and varnished mahogany runabout is a real head-turner, and a stylish way to water-taxi to a picnic on one of the green National Park-owned islands within the harbor (waterlimo.com.au).

Afloat on a Dream

Many tourists take scenic flights up the coast for a gourmet meal, and you should, too. Book Sydney Harbour Seaplanes' deal and you'll be treated to a 15-minute flyover of Sydney Harbour and Bondi Beach, plus lunch at Catalina, one of the best restaurants in town. After a thrilling overhead tour of the harbor, it's a pleasure to relax at Catalina. The minimalist décor (think white walls and blond wood) is the Sydney architectural standard now. And the food is as modern as the design: Dishes include roasted snapper served with potato purée, and asparagus risotto (seaplanes.com.au).

Nature Ride

Getting down to water level in a sea kayak is the perfect harbor bonding experience. Book Sydney Harbour Kayaks' three-hour guided trip, which takes the guesswork out of setting a route on your own. Start from Spit Bridge and paddle lazily into the outer reaches of Middle Harbour and the Garigal National Park, and you'll be transported back to the meta-Sydney the Aborigines knew for 7,500 years. The flat water, eucalyptus forests, osprey nests and preternatural quietude give you a taste of what a trip into the encompassing wilderness of Australia might offer you (Spit Bridge, Mosman; 4shk.com).

Afoot and Afield

When you first start planning your trip, you'll hear that you must go shopping at The Rocks, a warren of narrow streets that are cluttered with tourists, especially between the Harbour Bridge and Sydney Cove. But the best way to experience the neighborhood is to take Rocks Walking Tour's 90-minute guided stroll, on which guides bring history to life in the cobbled lanes and alleyways. You'll find out how this spunky city was founded by 11 boatloads of convicts, who, in 1788, were exiled from England to Australia, which served as Britain's open-air prison until the 1860s, for offenses as paltry as stealing a loaf of bread. You'll come to understand how difficult life was for these founding fathers, and gain an appreciation for just how far this lovely city has come in a mere 216 years (rockswalkingtours.com.au).

Adrenaline Rush

Many visitors are intrigued by the chance to walk across the top of the 450-foot-high Harbour Bridge's catwalks and ladders, held up by some ropes linked to a climbing guide. But, at over $100, this is an expensive proposition. For a cheaper alternative, climb the 200 stairs of the 180-foot-high southeast pylon. At the top there is a small museum devoted to the bridge's construction, and a panoramic city view (Southeast Pylon, Sydney Harbour Bridge; pylonlookout.com.au).

Pie in the Sky

It's hard to believe that some of the best food in Sydney is served out of a converted trailer, parked on the wharf. But it's true: Harry's Café de Wheels has been baking Sydney's most popular meat pies since 1945, and they are truly fabulous. The meat pies, encased in a flaky and buttery crust, come topped with mashed potatoes or mushy green peas, a British favorite done right (Cowper Wharf Road, Woolloomooloo; harryscafedewheels.com.au).

Music to Your Ears

Stop admiring the striking Sydney Opera House from a distance and check out the inside. Choose from a one-hour tour of the theaters and foyers (home of the Australian Ballet and Opera Australia), or a two-hour tour of the backstage area, which costs $105 and includes breakfast (sydneyoperahouse.com).

Waterworld

There's only a handful of hotels beside Sydney Harbour, and one of the most interesting is in a converted dockside warehouse. The Sebel Pier One has 161 rooms, all with views of nearby Harbour Bridge on one side or quiet Walsh Bay on the other. The minimalist design incorporates some of the girders and other structural elements of the wharf's original pavilion, and a large Plexiglas panel in the floor of the lobby gives you a view of the doings under the bay waters (11 Hickson Road, Walsh Bay; mirvachotels.com.au).

Industrial Chic

Located across from the Royal Botanical Gardens, the 104-room W Hotel Sydney has also incorporated many of the structural elements of its former incarnation as a wool warehouse. The cavernous lobby is topped off with huge gears, beams and rafters, and guest rooms are understated, with black-and-white photos on the walls, king-size beds and not much else. The best part: The hotel's bar is the epitome of Sydney's hipster scene, so you don't need to go far for some fun people-watching; just don't forget to pack your "going out" clothes (The Wharf Road, Woolloomooloo; starwood.com).

Period Piece

If hip minimalism isn't for you, check into the 382-room Grace Hotel, located a few blocks up from the harbor in the central business district, where you'll also find the city's best shopping. This beautifully restored Art Deco masterpiece, built in 1930, has retained its gleaming stairwells and marble floors. The rooms have a combination of period and modern furnishings, and are ultra-comfortable. There's also a wine bar on-site, where you can order some of the best of Australia's astonishingly good wines. At breakfast, watch the bustle of Sydney's business life as you lazily plan walks around the neighborhood or shopping excursions to the Pit Street Mall, around the corner. It's your honeymoon—you can relax and take your time (77 York Street; gracehotel.com.au).