Bars

The Tipsy Blowfish- Run by Texan expats Joe and his daughter Courtney, this friendly bar on the main square of La Crucecita has quickly taken hold as one of the best drinking establishments in town, bringing in an even blend of locals, Mexican visitors, and gringos. Aside from cold, inexpensive beer, it doesn't hurt that most of the local girls who work there are beautiful, simpatica, and somewhat bilingual. The bar features live music a couple of nights a week in a variety of styles from Latin rock to salsa to blues. Each month brings at least one big holiday celebration party, such as Halloween, Valentine's Day, and New Year's Eve. Local knowledge - the "cubetazo" (a bucket of five beers) is the best value. Also home to Casey, the biggest dog in Huatulco. Andy the British bartender speaks with a virtually incomprehensible accent, so just nod and smile to whatever he says.

Cafe Dublin- The requisite Irish bar that no town is complete without, no matter how far from Ireland you wander. Probably the best hamburger in town, and a small cozy place to play darts downstairs or hang out upstairs on sofa chairs and couches. Argentinian bartender Rodrigo is friendly and bilingual, and you'll get on his good side if you throw a "Viva Maradona!" his way. If you tell jokes about how many Argentine men it takes to screw in a lightbulb (one, he stands there and lets the world revolve around him), he might not be as kind. If Lupe serves your drinks, ask her when she's going surfing. The $2 Bohemia is good beer and good value. On Carrizal a block south of the Plaza Madero shopping mall.

La Crema- Diagonally opposite the Blowfish on the main square in La Crucecita, La Crema changed its location and its atmosphere in 2007. It traded in some its funky cave-like ambiance for an open air upstairs location, though it has maintained the same blend of couches, easy chairs, and high chairs, along with colorful hangings and huge candles. Some of the best pizza in town, made in a wood-fired brick pizza oven. Atrociously slow times for turning out pizza when they're really busy, though. Most of the staff is fluent in English. Also has a cool store inside that sells the same kind of colorful things the place is decorated in.
Restaurants
There are more good restaurants than bad ones in La Crucecita, and it's really hard to go wrong anywhere around the main square. Oasis and Ay Caray are decent, as is the newly renovated and very elegant Il Giardino del Papa. Over toward Chahue, La Boheme is an outstanding French restaurant and while pricey by local standards, would be cheap in Los Angeles. Viena, in Tangolunda, is run by an Austrian odd couple named Mannfred and Helmut and is also great European cuisine. All up and down the side streets of Crucecita are simple places the locals patronize, from taco stands to full menu restaurants, and most of them tend to be very cheap and quite good. Just look for a total absence of frills and plenty of customers and you'll know you're at a good spot. The ones mentioned below are very reasonably priced local classics, where you'll find other good restaurant owners in town eating at, the best seal of approval.
Rigoletto - For great value on incredible Italian food, this hole in the wall restaurant is a local favorite. Jordana makes everything from scratch, and the place is perpetually busy even in the off-season. Because everything is made fresh on the spot, preparation takes longer than other places and her son is the only waiter, so be prepared to drink some wine and wait some time for your order. But it's worth it. On Ocotillo between Bugambilia and Gardenia in La Crucecita. (958) 587 1246
Terracotta- Housed in the elegant Mision de Los Arcos hotel on Calle Gardenia a half block off the main square in La Crucecita, Terracotta is a beautiful, air-conditioned restaurant with surprisingly reasonable prices. Service is pleasant and fast, there's a nice view through the huge glass window of the adjacent park, and the Oaxacan specialties are as good as they come. The tropical salad (mango, pumpkin seed, avocado, and jicama, in a vinaigrette) has to be tasted to be believed. Also has an outdoor cafe with free wireless internet, and is a very popular breakfast spot.
Cafe del Mar- Only open for breakfast and lunch (they close at 6pm), this new establishment run by Italians Max and Maiko and Maiko's Japanese mother offers both Italian style breakfasts and sandwiches, as well as great sushi, yakimeshi, and other Japanese dishes. A great place to idle away a morning drinking good espresso or cappucino, with free wireless internet for customers. Located in Santa Cruz near the marina, just up the street from the park on the corner of Monte Alban and Coyula.
Discos
If you want to go out dancing at night, be prepared to stay up late - real late. Like much of Latin America, discos only begin to get going at about one to two in the morning. There are three or four clubs in Chahue, within walking distance of each other, and they all charge ten dollar covers. Which is the best is usually a matter of musical taste, though the ambiance of each one is quite different from one another. Papaya is perennially popular, upstairs in an open air atmosphere. Behind one of the bars is a glass partition looking into a swimming pool, where underwater dancing girls frolic at certain times of night. The music never seems to change from night to night, so if you've experienced Papaya once you pretty much know you're going to get the same thing every time you go. One of the other downsides to Papaya is the lack of a proper dance floor - patrons are left to dance in the spaces between tables. La Mina ("The Mine") is an underground club in the basement of the Hotel Aligheri and favors much more of a house/techno blend of music. There's a proper dance floor at La Mina with lots of flashing lights and dry ice, and there are comfortable booths and tables. Boulevard is a fairly new addition to the scene, just down the street from Papaya, and is already attracting a loyal clientele who appreciate its more formal nightclub atmosphere. For singles looking to hook up with someone, the discos are the only good option in town because they're where everyone goes to party. On the other hand, if it's not a big holiday time with lots of people in from Mexico City and elsewhere, you can forget the singles scene. The discos on an average night are usually filled with very young self-contained groups of locals, the hotel, bar, and restaurant workers of the area who don't have to get up before noon.