With a typical karst topography, the area around the Huangguoshu Waterfall boasts a cluster of fascinating water-eroded caves. "Fairy Dragon Cave," located four kilometers upstream from the waterfall, is one of the most interesting among all the caves. Besides its karst features, it also used to be a military stronghold of the local ethnic minority groups, with some military facilities still remaining.

It takes about an hour to go through the 1600-meter-long sightseeing pathway in the cave.