Like most smaller Tibetan cities, visitors generally come for the surrounding natural splendor and to encounter something of the unique Tibetan culture. When it comes to the latter, the best opportunity for a quick culture fix is at the Galden Jampaling Monastery.
The heart of the Tibetan town, the monastery is a fascinating place to witness Tibetan Buddhism in action. Calling it "Art" or "Entertainment" is certainly improper; rather it's a view of the living practice of a deeply held faith. If you're lucky, you can witness a Buddhist "debate" usually held in the afternoon)—highly ritualized and structured formal religious discussions.
If you arrive at the monastery in the morning or right after lunch, you can offobserve the monks reciting prayers, creating a melodic murmur in the assembly hall. There is also a "sky burial" site behind the monastery but visitors are strongly recommended to respect the privacy of this ritual, no matter how tempting it might be to watch on.
If you're feeling inclined to find a little entertainment of a more earthly kind, the Chinese part of town is the place to go. Typically, Chinese settlers have brought their KTV bars and discos with them. Snooker, billiards and darts can be found in several tavern-style bars around town, where you might find other travelers or friendly local Chinese or Tibetans willing to tip a few with you.