Jerusalem is divided into three sections: the Old City, New City (West Jerusalem), and East Jerusalem. The walled Old City, in the center, contains Muslim, Jewish, Christian, and Armenian quarters. Most of the narrow streets of the Old City are lined with shops where merchants sell foodstuffs and traditional handicrafts; homes are clustered around courtyards surrounded by high walls. Many of Jerusalem's religious landmarks are located in the Old City. The Western Wall is a remnant of the supporting wall of the Second Temple. After the Jews were  banished from the Temple Mount, the Western Wall became the most sacred place of Judaism. Atop the Temple Mount are the gold-domed Dome of the Rock and the silver-domed al-Aqsa mosques. The street called the Via Dolorosa is believed to be the site of the original Stations of the Cross. The Church of the Holy Sepulcher was begun in the 4th century AD and was rebuilt by the Crusaders beginning in 1099. The largest of Jerusalem's many parks encircles the walls of the Old City.

Tourism is the major industry of the city, along with the government-related functions. Industries include diamond cutting and polishing, home appliances, furniture, pharmaceuticals, chemicals, shoes, plastics, textiles and clothing, printing and publishing, and jewellery. The city is connected by rail and bus to Tel Aviv and is served by Mediterranean ports.