Arriving in medieval town Bruges Belgium with train from Brussels

Bruges has most of its medieval architecture intact, making it one of the most well-preserved medieval towns in Europe. The historic centre of Bruges has been a UNESCO World Heritage Site since 2000.

Many of its medieval buildings are notable, including the Church of Our Lady, whose brick spire reaches 122.3 m (401.25 ft), making it one of the world's highest brick towers/buildings. The sculpture Madonna and Child, which can be seen in the transept, is believed to be Michelangelo's only sculpture to have left Italy within his lifetime.

Bruges' most famous landmark is its 13th-century belfry, housing a municipal carillon comprising 48 bells. The city still employs a full-time carillonneur, who gives free concerts on a regular basis.

Bruges was a location of coastal settlement during prehistory. This Bronze Age and Iron Age settlement is unrelated to medieval city development. In the Bruges area, the first fortifications were built after Julius Caesar's conquest of the Menapii in the first century BC, to protect the coastal area against pirates. The Franks took over the whole region from the Gallo-Romans around the 4th century and administered it as the Pagus Flandrensis. The Viking incursions of the ninth century prompted Count Baldwin I of Flanders to reinforce the Roman fortifications; trade soon resumed with England and Scandinavia. Early medieval habitation starts in the 9th and 10th century on the Burgh terrain, probably with a fortified settlement and church.

Bruges became important due to the tidal inlet that was important to local commerce. This inlet was then known as the "Golden Inlet". Bruges received its city charter on 27 July 1128, and new walls and canals were built. In 1089 Bruges became the capital of the County of Flanders. Since about 1050, gradual silting had caused the city to lose its direct access to the sea. A storm in 1134, however, re-established this access, through the creation of a natural channel at the Zwin. The new sea arm stretched all the way to Damme, a city that became the commercial outpost for Bruges.

Bruges had a strategic location at the crossroads of the northern Hanseatic League trade and the southern trade routes. Bruges was already included in the circuit of the Flemish and French cloth fairs at the beginning of the 13th century, but when the old system of fairs broke down the entrepreneurs of Bruges innovated. They developed, or borrowed from Italy, new forms of merchant capitalism, whereby several merchants would share the risks and profits and pool their knowledge of markets. They employed new forms of economic exchange, including bills of exchange (i.e. promissory notes) and letters of credit.The city eagerly welcomed foreign traders, most notably the Portuguese traders selling pepper and other spices.

With the reawakening of town life in the twelfth century, a wool market, a woollens weaving industry, and the market for cloth all profited from the shelter of city walls, where surpluses could be safely accumulated under the patronage of the counts of Flanders. The city's entrepreneurs reached out to make economic colonies of England and Scotland's wool-producing districts. English contacts brought Normandy grain and Gascon wines. Hanseatic ships filled the harbor, which had to be expanded beyond Damme to Sluys to accommodate the new cog-ships. In 1277, the first merchant fleet from Genoa appeared in the port of Bruges, first of the merchant colony that made Bruges the main link to the trade of the Mediterranean. This development opened not only the trade in spices from the Levant, but also advanced commercial and financial techniques and a flood of capital that soon took over the banking of Bruges. The Bourse opened in 1309 (most likely the first stock exchange in the world) and developed into the most sophisticated money market of the Low Countries in the 14th century. By the time Venetian galleys first appeared, in 1314, they were latecomers. Numerous foreign merchants were welcomed in Bruges, such as the Castilian wool merchants who first arrived in the 13th century. After the Castilian wool monopoly ended, the Basques, many hailing from Bilbao (Biscay), thrived as merchants (wool, iron commodities, etc.) and established their own commercial consulate in Bruges by the mid-15th century. The foreign merchants expanded the city's trading zones. They maintained separate communities governed by their own laws until the economic collapse after 1700.