Yantai literally means "smoky mound". In the Ming Dynasty, locals used wolf dung to light fires (Langyan) to warn the whole village of approaching Japanese Pirates (Wokou). The city was nothing but a small fishing village until the late 19th century when it became a treaty port for the British, handed over by the falling Qing Dynasty, which had been defeated in the Opium War. Then with the Germans' power over the whole Shandong peninsula in early 20th century, Yantai was also controlled by Germans for about 20 years. After the Americans won World War I, they turned Yantai into a summer station for their entire Asian fleet. Then the Japanese set up a trading establishment in the town. You may be able to get an idea of the different influences at the western style Yantai Museum, which used to be a guild hall. However, the colourful history has not left a distinctive architectural mark, there has never been a foreign concession, and though you will see an occasional nineteenth-century grand European building, most of the town is of much more recent origin. After liberation, the town's name was changed from the original, Chefoo, to Yantai and was opened to the world as an ice-free trade port in 1984.

Many foreigners come to Yantai on the ships that call in at the big port in the north of town. There are many Russian sailors, who stop off at the International Seamen's Club opposite the train station. The tourist industry is based around the beaches and some say Yantai is best described as Qingdao's poor relation. Wandering the seafront is the most pleasant way to spend any time here. The city has two beaches, but they're often littered, windy and are hemmed in by not very attractive buildings. Number 2 beach, the furthest, is the best, though the water is not very clean.

Yantai is the birthplace of the famous Shandong cuisine and also boasts a richness in marine products. Peanuts and various fruits are the major agricultural exports while wines and clocks are most well-known throughout the country.