Bāyī (བརྒྱད་གཅིག་, 八一), a recent Chinese creation close to the older Tibetan town of Nyingtri, is the largest town along this stretch of Hwy 318 and now the capital of Nyingtri prefecture. It is surrounded by forested hills and the descent into town offers fine views of the valley, though the town itself is nothing remarkable. Locals tend to be coolly curious rather than friendly towards foreigners.
Ask your guide to show you Bayi Pelri mountain, on the east side of town. This holy mountain is associated with the epic battles of Guru Rinpoche against an array of evil forces. The kora (pilgrim circuit) around the mountain takes a few hours to complete, though it is highly unlikely you will be allowed to join it.