On the eastern edge of Kabukicho is Golden Gai, a cluster of five short, narrow streets lined with several dozen tiny bars that have been converted from old barracks. The establishments, none more than about 10 square meters in area, are always packed to capacity with regulars. Of course, "packed to capacity" is a relative term, since many of the establishments only have four or five seats. Golden Gai has long been a haunt of the intelligentsia; novelists, poets, manga artists, filmmakers, and playwrights are among those who come here to engage in heated discussions over cheap sake late into the night.

In 1975, Golden Gai found itself suddenly in the spotlight when two writers known for drinking the night away in its bars won a pair of Japan's most prestigious literary awards. Ever since that time, having a favorite bar in Golden Gai has been considered an essential qualification for being a person of culture, and the district has been enjoying a heyday. Although old bar owners have passed the mantle to successive generations and longtime regulars have departed, Golden Gai has maintained its vigor by steadily attracting a younger clientele.

A little way from Golden Gai is Shinjuku Suehirotei (site is Japanese only), a theater dedicated to performances of rakugo, a traditional comic monologue form that has become a rarity. It is said that at one point during the Edo and Meiji periods, the city had over 100 rakugo theaters. But during the Taisho era (1912-26), rakugo declined rapidly, done in by the rise of movie theaters. Now there are only a handful of rakugo theaters, including the Shinjuku Suehirotei, left in Tokyo. A performance of this witty storytelling art handed down from the Edo period affords a glimpse into the kind of humor that has tickled Japanese sensibilities since ancient times.