Even though touring Tibet is for its fantastic sights, shopping is another pleasure the same as touring. In Tibet there are many odd, fascinating and beautiful things to buy and Tibet's culture continues to produce all sorts of objects for religious and other uses.
The best marketplace for curious is on and around the Barkhor, in the heart of Old Lhasa. Small shops carry colorful items like prayer flags, fur hats, horse bells and bridles, broad leather money-belts and copper teapots. The merchandise in small open street stalls changes from day to day. A curious seeker can find temple bells, conch-shell trumpets, rosaries, prayer wheels, amulets and a variety of jewelry made of turquoise, coral and silver. Most of the prayer wheels, bracelets, necklaces and other small items are made by Tibetans in Nepal and India. A useful item is a wooden tea cup, with or without a lining of beaten silver.
Tibetan rugs can be found hanging on display along the Barkhor. Some of these have more individuality and appeal. Older house and horse rugs are of wool and usually have soft colors; newer rugs are usually of a wool mix and are brighter. As you amble clockwise around the Jokhang Monastery you may be approached by Tibetan pilgrim-traders eager to sell you their own swords, invalid knives, jewelry, Buddha figures. 
In the Barkhor's shops and stalls, and above all with individuals, you may bargain. Haggling is a game that every Tibetan enjoys, and it should be played with perseverance, patience and good humor. The failure by tourists to haggle effectively has had a dramatic effect on prices.
Any visitor to Lhasa notices the decorated tents, canopies and awnings that Tibetans use for numerous outdoor purpose. These are becoming a popular item for travelers to take home.
Lhasa's major bookshop, Xinhua, on Yutuo Lu, does carry maps of Lhasa, poster, Tibetan primers, Tibetan-Chinese dictionaries, and Chinese and Tibetan paperback books.