The second most important building in Malcesine is the fifteenth-century Palazzo dei Capitani, close to the harbour. This was the headquarters of the Venetian rulers of the area, the Capitani del Lago. It's grander than the town's other modest historical buildings, and although at the time of writing the building is closed for restoration, you can still wander through the entrance hallway and out to a very pretty lakeside garden. A lion of St. Mark painted on the wall is a fading reminder of the area's Venetian overlords. To the south of town a pleasant lakeside promenade meanders past hotels, cafes and potential bathing spots to a little headland which boasts a couple of 'beach' establishments without real beach but with neat waterside lawns where you can hire a sunbed and parasol and relax with splendid lake views. There are plenty more bathing opportunities on the other side of town, where tiny pebbly beaches fill up with swimmers and sunbathers in the summer.
The main road around Lake Garda can make strolling along an unpleasant ordeal; however in Malcesine this isn't a problem as there is a path for cyclists and pedestrians running between the road and lake for some distance in either direction. If the sun isn't too hot, explorers can continue to the south past the picturesque 'sunbathing headland' as far as Cassone, a pretty little village which claims to have the world's shortest river. It also has a pretty, tiny harbour and a waterfront cafe-restaurant. The walk between Malcesine and Cassone, which takes around an hour, passes through the romantically-named Val di Sogno (Valley of Dreams), a scattered collection of villas and hotels, with a watersports station and plenty of peace for sunbathers. Look out for the grand villa on the green headland with gardens you can glimpse and even a little private cablecar. The walk passes two of Lake Garda's five islands: Isola dell'Olivo and Isola del Sogno.