[5] The city is famous for its hot air balloon festival held annually on the full moon day of Tazaungmon.

Prior to British colonisation, Taunggyi was a small Pa'O village of a few huts and the majority of Shan ethnic.

Although geographically within the state of Yawnghwe, the town was denoted as a "notified area" by the British, exempt from the Sawbwa's administration.

Because of civil unrest throughout the Shan States during the early 1900s, Taunggyi served as the chief garrison for military police.

Taunggyi also served as a supply centre for the Shan States, and catered to persons of many nationalities.

It sits on a high intermontaine basin (erroneously called a plateau) that rapidly descends to the western lowland river valleys that make up central Myanmar, but is otherwise surrounded by mountain range.

Regular railway passenger service to the rest of the country is through the town of Shwenyaung, 12 miles (19 km) to the west.

There is also a significant Christian population, as the center of the Roman Catholic Archdiocese of Taunggyi the St. Joseph's Cathedral and its associated seminary are the main facilities, as well as a Baptist church.

There is also a smaller Anglican church, which originally served the British administrators, but recently it has fallen into a state of disrepair.

However, due to recently imposed zoning regulations, most of these operations have been moved to the surrounding new town of Ayetharyar.

The main agricultural products of Taunggyi are potatoes, tea leaf, tomato, beans, damson and seasonal fruits.

The stadium is the home ground of Shan United FC, a Myanmar National League (MNL) football club.