Background Dresden is the capital of the German federal state of Saxony (Freistaat Sachsen). Located on the Elbe River, it is an industrial, governmental, and cultural center, known worldwide for the Bruehl's Terrace and its historic landmarks in the Old Town (Altstadt). Although Dresden is larger than Munich when measured by area, the historic center is quite compact and walkable. Be sure to check out some of these places while in Dresden:

• Zwinger Palace The baroque palace features a nympheum, many sculptures of Permoser, a bell pavilion and famous art collections. Do not miss the "Alte Meister" - you'll find the famous Madonna Sistina of Rafael there including the well known angels. There is also a very nice museum on the arms of Saxon kings, the "Rüstkammer". Entry is free to the palace but some collections like the porcelain exhibition have an entry fee.
• Frauenkirche The reconstructed Church of Our Lady was completely destroyed during WWII, and has now been reopened. The City of Coventry, which was raided by the Luftwaffe in WWII, donated the golden cross for the dome of the church. Check out some ruins in the basement. Do not miss the tower visit and bring good shoes to climb in (otherwise you will not be admitted in!).
• Semperoper The building is well worth visiting, as it is one of the most beautiful opera houses in the world. The acoustics and the orchestra, the Staatskapelle, are marvelous. Its history saw many operas of Wagner and Strauss having their first nights there. Nowadays productions are of lower quality and follow the German "Regietheater" fashion. Make sure to inquire about the production in advance, or you might have unpleasant surprises. Make sure to also book tickets in advance. Some last-minute tickets are available from the box office shortly before the performance starts. Seats which do not have a good view are very cheap, and you can sit on benches behind the seats, right at the top of the auditorium, for free. When there is no rehearsal or performance, the opera offers an interesting tour behind the scenes.
• Elbe valley This used to be on the UNESCO World Heritage List, until the government decided to build a four-lane highway through the heart of it. So now as "the only un-UNESCO'd site in the world" still a tourist attraction.
• Fürstenzug This biggest porcelain painting of the world shows (almost) all Saxon princesses and kings on their horses and splendid parade uniforms. It leads to the "Stallhof" - the last preserved tournament place contained in a European castle. This place is in winter the location of a very romantic Christmas market with a big fireplace.
• Schwebebahn Dresden A unique aerial tramway.
Source: Wikitravel