Renting a car is the best way to go. You will see when you get there how close together everything is. Each town is like 15 mins away from the next. If you have at least 7 days you can easily go all over the island. We stayed in B & B's the whole trip and had good experiences in all of them. We used this website to find them: http://www.bbcanada.com
Charlottetown:
Hillhurst Inn:
The first night we spent here. Very pretty place, immaculately kept in historic home area. The rooms are all upstairs and a bit small but comfortable but there is a sitting room downstairs. The other photo above is another historic inn next door with pretty garden. It is very close to downtown so strolling nearby is enjoyable. We ate at a really good Lebanese place downtown named Cedars Eatery that also has live music. They have really good breakfast at Hillhurst in a pretty little dining room. It was more expensive than the other places we stayed but not too bad.
Duchess of Kent:
On our last night on PEI we stayed here. It was also a very nice inn with a spacious room. They had in room air conditioning. They had breakfast but since our flight left so early we didn't get to try it so I can't speak to whether it's good or not. It's comfortable but be warned there is no bathroom in your room, you must go down the hall. It's an old house so it's to be expected. This is also close to downtown Charlottetown but in a different area. It's closer to the waterfront, the city hall and governor's house. That's also a nice walking area by the water with a trail. Charlottetown has a thriving pub scene and we ate dinner at one called the Churchill Arms where I tried a potato burger (PEI is known for its potatoes) and had fried pickle for the first time. It was a fun little place but it took awhile to get our food. Churchill Arms
Cavendish:

There are lots of B & B's right next to Green Gables which makes it very convenient. We stayed at one called Willow Cottage Inn. It was very comfortable and the man who owns it is very, very nice. There is a pool out back if you want to swim. Nice breakfast, as well. We took a stroll to Green Gables in the early evening and had the place all to ourselves. We couldn't go inside, of course, but walking around the gardens, the Haunted Wood, and Lovers' Lane at dusk when there weren't tons of tourists was heavenly.
Summerside:
http://www.willowgreenfarm.com/
We stayed at Willow Green Farms which really is a farm. They sell wool clothes from their Merino sheep. When we were there their cat had just had kittens that were so cute. They are a very nice family with a very comfortable house. It was the only place we stayed that was all on one level. We had a door to the outside with a little stoop as well. They also had good breakfast with unlimited portions. Their farm is right next to (literally, they share the driveway with them) the College of Piping: http://www.collegeofpiping.com/. So we got to hear some Celtic music and see some Highland dancing while there. Summerside is bigger than Cavendish and more spread out than Charlottetown so we couldn't walk to restaurants and things as easily. So it was good we had the car to drive to the boardwalk. We had really good lobster at a casual dining place right on the water. Then we had ADL ice cream (YOU MUST TRY IT!) at a little shop on the boardwalk.
Other Places to go:
Brackley Beach, right over the Confederation Bridge. It looks so much like where Anne and Diana run through the sand dunes.
Dalvey by the Sea ("White Sands"). Have lunch there at a table by the window so you can see the river outside. Have the scrumptious seafood bisque soup for lunch and share a sticky date pudding for dessert. Sit outside in the Adirondack chairs and relax in the sun before you leave. Also there are beaches next to Dalvey where you can rent a bicycle to ride around. That sounded fun.
Have a traditional lobster supper in New Glasgow or North Rustico. It's a tradition on Sunday afternoons to have the whole community come out for a lobster feast. They have picnic tables (or even old doors on sawhorses) with long benches set up. Many restaurants recreate the experience that started in 1958 as a fund raiser for local farmers. Be prepared to wait quite awhile for this! We decided we couldn't wait any longer and opted for a more typical dinner at the Olde Glasgow Mill Restaurant in New Glasgow, which has a great view of the river and hills. I had a really good lobster pasta there.
There was a place on the side of the road between Brackley Beach and Cavendish called the Dunes Studio Gallery and Cafe with beautiful gardens that also had a large restaurant/cafe where they sold local crafts, lots of blown glass, ceramics and jewelry. We watched them make pottery, too. Our pictures of the gardens don't do them justice. Take a look at the photos on their website.
Dunes Studio Gallery and Cafe
Here's what we did. We had arranged to pick up the rental car next to the airport the morning we left Charlottetown (when we flew in the evening before, the rental place was closed). We drove from Charlottetown north along the coast. We stopped at Brackley Beach and Dalvey by the Sea where we had lunch. We kept driving until we got to New Glasgow where we had dinner. Then to Cavendish where we stayed for our 2nd and 3rd nights on PEI. While staying in Cavendish we stopped in at Green Gables, Avonlea Village, and Park Corner (Silver Bush and Montgomery Heritage Musuem). We should have done the Confederation Trail to Cavendish beach then, too. Then we headed toward Summerside where spent night 4. On the way there we stopped at Lower Bedeque School and Bideford Parsonage. We could have done Seacow Head Lighthouse but we didn't yet know that's where it was. After our time in Summerside we headed back to Charlottetown for day 5. We didn't go along the coast because we wanted to save time. So we went through the interior, which was also very pretty farmland area. Hope this helps give you all a sense of how much time was spent in each place in case you plan to go.
I would try to check out the musical Anne and Gilbert in Charlottetown or Summerside. We didn't get to see it but it's on our list for next time. It shows often in the summer, we saw ads for it everywhere.
We didn't see the Sea Cow Head Lighthouse that Gus Pike's lighthouse on Road to Avonlea was based on and want to next time. There's gorgeous cliffs there, too.

And we've discovered there's a lighthouse you can stay the night in called West Point Lighthouse, which would be so cool!
West Point Lighthouse
Also we didn't do the Confederation Trail: Confederation Trail
to Cavendish beach, which we are sad we didn't because we missed seeing the red cliffs there. Definitely do that if you go!


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