When it comes to historical Edinburgh you can't get much more central than Grassmarket, part of the city's World Heritage Site.  
 

Located in a hollow in the Old Town and watched over by Edinburgh Castle, Grassmarket is an ancient marketplace dating back to 1477. It was also once a site for public hangings. Nowadays, it is a venue for current cultural offerings.
 

Historic pubs surround the market area in Grassmarket, many of which are family friendly and offer dining and outside seating areas. There are also a variety of restaurants and many independent and artisan retailers. In fact, 90% of the retail outlets in Grassmarket are independently owned.
 

There is a weekly Saturday market in Grassmarket which sells fresh, local produce including organic vegetables, artisan breads, fish and meat as well as crafts and gifts. Come December, a Christmas market is held from Friday to Sunday.
 

During the Edinburgh International Festival and Festival Fringe, Grassmarket is a venue for many free acts and you will find a buzzing and vibrant atmosphere unparalleled in the city.
 

Within short walking distance are Edinburgh Castle, The Royal Mile, Greyfriars Bobby, The National Museum of Scotland, Holyrood Palace and countless other bars and restaurants, including The Elephant House where J.K Rowling wrote Harry Potter.