Regions near the banks of river Ganga are extremely crowded and house several Hindu temples, narrow winding lanes and road-side shops. The main residential areas of Varanasi (especially for the middle and upper classes) are situated in regions far from the ghats; they are more spacious and less polluted. Such a place in an Indian city is called a housing colony. Varanasi is a holy city in Hinduism, one of the most sacred pilgrimage places for Hindus of all denomination. More than 1,000,000 pilgrims visit the city each year. Here is the holy shrine of Lord Kashi Vishwanath, (an aspect of Lord Shiva) and one of the twelve revered Jyotirlingas of the Lord Shiva. Hindus believe that bathing in the river Ganga will remit sins and that dying in the holy city of Kashi (Varanasi) circumvents rebirth. This holy city is worshipped as one of the Shakti Peethas where Divine Mother Sati's earring fell and so devotees believe that on that spot stands the present Vishalakshi Temple.

In the residential neighborhood of the city lies Sarnath, the site of the deer park where Gautama Buddha is said to have given his first sermon about the basic principles of Buddhism. It is one of the four pilgrimage sites designated by Gautama Buddha, the other three being Kushinagar, Bodh Gaya, and Lumbini. Here the Dhamek Stupa is a impressive structure marking the spot where the Buddha gave his first sermon. The Dharmarajika Stupa is one of the few pre-Ashokan stupas remaining, although only the foundations remain. Also remaining is the Chaukhandi Stupa commemorating the spot where the Buddha met his first deciples, dating back to the fifth century or earlier amd later enhanced by the addition of an octagonal tower.
Varanasi is also a pilgrimage place for Jains. It is believed to be the birthplace of Parshvanatha, the twenty-third Tirthankar.
Vaishnavism and Shaivism have co-existed in Varanasi harmoniously. The city has also been influenced by Islamic culture.
This explains the continuous tension between communities in the city and the fact that really ancient monuments are few. However, Varanasi has kept its sacred position as the Holy City of Hinduism.
A holy city, Varanasi does not take a backseat when it comes to fine arts and literature. Great Indian writers have lived in this city from Kabir and Tulsidas to Bharatendu Harishchandra, Jayshankar Prasad, Hazari Prasad Dwivedi; even named after the city, e.g. Kashi Nath Singh.
Art lovers and historians like Rai Krishnadas, his son Prof. Anand Krishna, musicians like Pt. Omkarnath Thakur, Ustad Bismillah Khan, Siddheshwari Devi, Dr. Lalmani Misra, Dr. N. Rajam, Pt. Anokhelal, Pt. Samta Prasad, Kanthe Maharaj and numerous others have kept the city alive to the spiritual aspect of fine arts apart from their ability to entertain. Numerous festivals are celebrated that preserve traditional styles of classical and folk culture. All night, open music concerts like ones organised at Sankat Mochan Temple, Hori, Kajri and Chaiti Mela, Budwa Mangal, are annual features that draw connoisseurs from all over.