Penglai, on the northern tip of the Shandong peninsula, is the "fairyland on earth" — the cliff-top tower where the Eight Immortals are said to have crossed the sea, and where real atmospheric mirages have been shimmering over the strait for as long as people have written about them. Around the legend sits a compact, walkable town: a Ming-dynasty naval harbor, the birthplace of the general Qi Jiguang, one of China's great wine-grape coasts, and the only ferry port for the islands of Changdao.

