The Medina in Tunis is not to be missed. Start from the Sea Gate (so called because the sea used to come right up to this point; much of Tunis is built on reclaimed land) and wander up the hill through the twisting warrens of this labrynthine market. You'll find everything from carpets to clothes to mosaics to olive wood. Prices are more expensive here than at comparable markets in Cairo or Marrakech, but you should go for the experience if not for the shopping. You'll also find that there is less hassle here than in Egyptian and Morroccan markets. If you step off the main thoroughfare and into the side streets, you'll find a real working market selling spices, oils, henna, and dozens of household items. This is a wonderful part of the city. It's also quite easy to get lost in the tiny covered alleyways of this huge market, but never fear. The medina is build on a hill, so if you head down, you'll eventually wind up back at the Sea Gate.
In addition to the shops, you'll find the Grand Mosque, which is open to visitors, as well as many restaurants and tea houses. As always, you will find most places have a higher 'tourist price,' and if you have even a few words in Arabic, you'll often be offered an entirely different menu with much lower prices. Even the 'tourist prices' are generally affordable in this part of town, however, and the sights, sounds, and smells of the Medina are not to be missed!
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