Landi Kotal is a small town at the top of the Khyber Pass. You must drive through it when crossing the pass.
The tourist attractions used to include hashish warehouses, a bazaar specialising in weapons, and weapons factories where children with files made things such as breech blocks by hand.
But now the bazaar once known as the "Smuggler's Bazaar" has been moved to Dara Khel which is south of Peshawar. The bazaar at Landi Kotal today is apparently just a pale shadow of its previous infamy.
Landi Kotal is famous for smuggling. Hashish, weapons and consumer electronics are the specialties, but if you are suicidally brave and haggle well, you could probably buy or sell almost anything.
As of 2006, the only way to stay safe anywhere near Landi Kotal is not to go there.
See discussion under Khyber Pass.