Unlike the neighboring town of Borlänge, Falun doesn't have a dominating shopping mall outside the town centre. Thus the best shopping is downtown, mainly along the streets Slaggatan/Holmgatan and à sgatan. If you're interested in local handicraft look for the Dalarnas Hemslöjd store by the main cobblestone square of Stora Torget, but be prepared for quite hefty pricetags. There's also handicraft and souvenirs available at the mine.
The most common souvenir from Falun and the Dalarna province is the Dala Horse, a symbol of Sweden. This small wooden horse has been carved since the 17th century. It is usually orange or blue and decorated with kurbits painting, a symmetrical type of decoration. If you want a genuine one, expect to pay at least SEK 100 for the smallest kind.
If the Dala Horse feels too mainstream and you want a symbol of the town of Falun rather than a symbol of Dalarna, look for a Falu Maiden. This lady is far from the fame of the Dala Horse and is not as easy to find in the shops. Look for the dress and the hat.
A third option is to buy a Kåre Goat. According to legend, the copper mine in Falun was discovered when the goat Kåre one day showed up at home with reddish dirt on his horns. Kåre's owner followed the goat into the woods the next day and saw him rub his horns in the ground, and thus the copper was found. A large wooden Kåre Goat stands on the mining area, overlooking road 50 towards Borlänge.
