Bundanoon became a well known tourist destination early in the 20th century for its exquisite scenery of what has since become Morton National Park.

The town is celebrated for its annual garden showcase and in particular for the Brigadoon Festival annually in April, which attracts thousands of visitors, both local and from around the globe. Brigadoon is a day of Scottish entertainment, including pipe bands, highland games, dancing, and Scottish food.

Steam train excursions from Sydney to Bundanoon occur throughout the year, and the town is a favourite destination for car club meets and weekend stays.

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