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A medina highlight, this hugely atmospheric souq is filled with exquisitely decorated shops producing and selling chechias, Tunisia's traditional blood-red felt caps. In the 17th century, when this souq was built, a million chechias were made annually by 15,000 craftsmen, sold locally and exported worldwide. Today, the 10 or so chaouachis working here produce the traditional Tunisian version as well as customised hats in a variety of colours and styles exported to North and West African countries. The cafes inside the souq are popular throughout the day and night with local tradesmen, shoppers and students.