Day 1: Melbourne's CBD

There's a lot to see downtown - or in 'the City', or CBD (central business district), as the locals call it. There are several excellent museums, including the National Gallery of Victoria's twin sites, the International (with art from around the globe) and the Ian Potter Centre (superb collection of Australian art). The latter is housed within the award-winning architectural centerpiece, Federation Square, which is packed with restaurants and bars.

Speaking of eateries and watering holes, the CBD is filled with them; locals make a sport of finding the newest ones down a hidden laneway - see if you can beat them to it. Elsewhere in the CBD you can dine on yum cha in Chinatown, score some Greek CDs in Lonsdale Street, browse the stalls at Queen Victoria Market, or come face to face with the sharks at the Melbourne Aquarium.

Day 2: Eat, drink, shop

Melburnians' love of shopping is as great as their passion for food - and that's saying something. From big-name department stores in the CBD such as Meyer and David Jones to thousands of specialty, independent, and second-hand shops all over town, you'll have a hard time coming away empty-handed. Should you need help, however, book yourself into a Melbourne shopping tour - an expressway to the bargains aplenty at the city's numerous factory outlets.

Eating in Melbourne is also a joy, and you'll be pleasantly surprised when you get the bill at the end. A culinary mix of European, Mediterranean and Asian flavors and imaginative chefs have resulted in a modern Australian style with a flair all its own. One tip: Book the Colonial tramcar restaurant well ahead of time, it's worth it.

Day 3: Day Trips from Melbourne

From rugged beaches to tropical rainforests to high country scrub, there's plenty to explore on a Melbourne day trip. Kids tend to go gaga over the 16-inch (40 cm) fairy penguins that roost on Phillip Island, as well as the koalas, kangaroos, platypi and other local fauna at Healesville Wildlife Sanctuary. You'll find more natural splendor along the tight curves of the Great Ocean Road, where you can surf or sunbathe to your heart's content.