This is the second village in the game. It contains a few useful things besides being a point of respite. The buildings are from the left to the right, a Shop, a House, a Blacksmith, a Fortune Teller, and a Tavern. At the Top is the Kitchen God and at the bottom is another House and a Stable. See the corresponding wiki pages for detailed information about these locations and the additional things you can do here.
For this guide, the most notable locations are the shop and the blacksmith. The shop can contain many useful items to pick up. Definitely make use of this resource to help you succeed. The first time you enter it, there will be a cutscene featuring Pekeji, one of the Character's that you can take as a partner through dungeons to help you out. Until you progress his quest line, he will always be here and break a pot when you enter the shop, providing 4 additional items to choose from. Once you progress his story, he will no longer be here so you will not have the additional items at the shop. If you are feeling confident, you can steal from this shop. Refer to the wiki's Thievery for strategies on how to succeed at that. Now if you want to trivialize the final boss of the story mode, I recommend buying any monster meat you see here and then keeping it on your person all the way to the end if you can manage that. I will provide more details later in the guide. As with all of the information I share, this is merely an option you can use to your advantage and is not necessary to succeed.
The other location of note is the blacksmith. For 1,000 Gitan he will upgrade any metal weapon (so anything except clubs and shields with an exception to the shields bit.) He normally increases your weapon strength by 1 with a rare chance of increasing it by 3. While not necessary by any means, upgrading your weapon does help a lot. You can utilize his service once per run.
There are additional side quests that you can progress here as well. With the way Shiren the wanderer works, I recommend checking out the Quests in detail on the wiki page so you can get those started if you wish. Many quests require you to speak with a Character multiple times on multiple different runs in order to finish them. After you are done with your business, you should be ready to continue forward to the next part of the dungeon. Head all the way to the right of the middle section to proceed.