There are plenty of hiking options from Kastelruth, most of the trails nearby are well marked and generally have a very gradual elevation gain. Though there are more challenging trails as you get closer to Schlern itself, most of the trails and probably more towards the easy side of things. If you are hiking by yourself please let someone know where you are going. I saw lots of people on the trails at the lower elevations. Make sure to monitor your time so you are back before it gets too dark.
The town itself isn't very large. There are only about 6,400 people in the group of villages that come under the municipality. You will notice that there is a large number of of pensions, hotels etc. In Late summer the town hosts often good numbers of visitors from all parts of Germany, Austria and Italy. There were no neon lights, no busy streets. Quite laid back.
One thing that catches your eye is the medieval church in the town center and its large spire. It is supposed to be the tallest in the South Tyrol region. One thing I couldn't help but noticing, that a lot of the little shops and things seemed to be owned by one family (or clan.) There is a decent sized grocery, lots of small places to eat the local food. This is a very traditional village, you will see the decorations on the sides of houses, you will see that the farming lifestyle is never far away.
Walk in any direction for a few minutes and you will be out in nature
Market - every Thursday
Country market - every Friday (except in winter)
Corpus Domini (the catholic procession of Castelrotto, the most striking in the Alps)
Holy procession St. Peter and Paul - Castelrotto patron saint celebration - late June
Great village fair - August
Harvest festival procession - October
This is one of the nicest mountain huts I have been too. The food is great! Most of it really ''hut-made'' and traditional. The hut is on 2300 meters above sea level. And it is a nice hike to it and of course offers a lot of further hiking/climbing possibilities. So an over night stay might be recommended.
It has a little play ground for kids. My daughter did not want to leave the massive sand pit.
Italian name: Rifugio Sasso Piatto.
Open from June till October depending a bit on weather conditions. So check if you are at the end....
Has 60 beds. Even double-rooms with showers and toilet .
Though I was staying in Castelrotto, you will pass thru Bolzano to get there. I took a day and made the bus ride into Bolzano to look around. There's plenty to see here, it is a much bigger town. Lots of bicycles here, and a nice walk along the river with pretty views of Castle Mareccio surrounded by vineyards. The Archeological Museum has the famous Otzi Ice Man display, it's really facinating, well worth the visit.
This cable car takes you to a good start for various hikes up on Seiser Alm. At the end of it is Williams-Hütte (www.williamshuette.it) . One way ticket was 8 Euro. We hiked from there up to the Plattkofelhütte (about one hour with baby) which is steep but nice. And from there all the way over to the bottom of the Rosszähne and down to Tirler and back to Saltria. (About 4 hours). A recommended all day trip.
Williamshütte has a nice little play ground for kids.
Hut was closed in October. So check before hand.
Various other hikes possible for example to Baita Murmeltier Hut which was open. Or Zallinger was open as well.
The little town that is the gateway to the Alpi di Suisi meadow, where the cable car goes up to Compatsch. Another cute little town with good bus connections to the rest of the area. Totally walkable, clean, and with beautiful vistas everywhere.