Embracing an exquisitely beautiful lagoon and surrounded by ancient forests, Knysna (pronounced ny-znah) is probably the most famous town on the Garden Route. Formerly the centre of the timber industry, supplying yellowwood and stinkwood for railway lines, shipping and house-building, it still has several shops specialising in woodwork and traditional furniture. The lagoon is popular with sailing enthusiasts, and there are plenty of boat trips on offer.