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When American writer Dorothy Parker arrived bare-legged at the imposing gold and marble entrance of the Monte-Carlo Casino one warm summer night in 1926, she was turned away for her improper attire. “I went and found my stockings,” she recounted, “and then came back and lost my shirt.”

These days, the formal dress code and an amply stuffed wallet are still de rigueur at the landmark Charles Garnier-designed Casino, but there is one major difference: You no longer have to lose your shirt to experience Monaco's latest stylish offerings.

Call it the New Era. Over the past few years, the principality has been casting off its stuffy, Old World image, thanks in part to Prince Albert II, who is taking an active interest in the increasingly more daring cultural offerings. Even the most enduring traditions are changing: This year, for example, Princess Caroline of Hanover arrived at the annual Spring Rose Ball sporting a motorcycle-helmet handbag, and the traditional dance-floor opener – a romantic strain of violins – was replaced by Chuck Berry's rocking electric-guitar riffs.

Of course, there are still more gleaming Lamborghinis and Ferraris per square metre than anywhere on the Côte d'Azur, and mega-yachts clog the harbour. But Monaco now offers a range of contemporary and even affordable hotels, restaurants and bars that are attracting a hip, younger crowd.

Over the past three years, Monte-Carlo, the most renowned glitz-stop perched on the hill, has seen its share of hard hats and construction. Inside the mythic Garnier Casino (passport and jackets for men, please), don't miss the meticulously restored Opera House. One of the most welcome additions to the nightlife scene, though, is Moods, a stylish but casual music bar lounge, under the Café de Paris. For the cost of a reasonably priced drink, you can spend the entire evening (which often ends with a dancing-in-the-aisles party atmosphere) listening to live jazz, blues and rock.

Another new hot spot near the Casino Square is Yoshi, a gastronomic Japanese restaurant housed in a Zen-inspired wood and glass pavilion at the Hotel Metropole, headed by starry chef Joël Robuchon. Along with a wide selection of imported fine sake, the menu features jellied oysters with algae, delicate marinated black cod, exquisite platters of sushi and sashimi.

For the ultimate haute-cuisine hamburger (even the cornbread bun is homemade) and copious organic salads, take the elevator to the seventh floor of the newly refurbished Fairmont Hotel, whose $70-million makeover includes a panoramic rooftop poolside restaurant, l'Horizon, and a Willow Stream Spa, also open to non-guests.

The unofficial headquarters for the new buzz, though, is the residential Condamine neighbourhood by the port. Check out the daily morning open-air market where the native Monégasques (there are approximately 6,000, only a fifth of the population) fill their straw baskets with a rainbow of fresh produce – yellow zucchini blossoms, perfect vine tomatoes and tangy arugula. Just about any bakery carries the local finger food, Barbagiuan – a fried dumpling stuffed with Swiss chard and Parmesan cheese, or pissaladière, a flat onion pie. If you don't understand the old-timers playing pétanque in the dusty square, don't worry: They're speaking the ancient Monégasque dialect, which is also proudly taught in grade school.

All along the harbourside quays (just below the wonderful public Olympic salt-water pool), couples sip after-work cocktails in newly-opened outdoor cafés and bars. Even Monaco's exclusive historic Yacht Club, on the far side of the quay by the port, was recently revamped into a modern minimalist decor of sombre polished woods. But you'll also see simple, blue-painted fishing boats unloading Mediterranean sea bass and rock fish, delivered fresh to the doorstep of local restaurants. The old hangars are now restored artist studios. The latest additions to this portside scene include Zest –offering a fine-food boutique, restaurant and caviar and champagne bar – and the Brasserie de Monaco, a lively pub serving four blends of its own home-brewed organic beer, attracting a local crowd for its $3 per glass happy hour.

No visit is complete, though, without a look at Monaco Ville, up above the harbour to the west, otherwise known as the Le Rocher – The Rock – the narrow medieval maze of cobblestone streets, the cathedral, and dominated by the Grimaldi fairy-tale Palais Princier. This dusty-pink palace, the Grimaldi's seat of government, once a 13th-century Genoese fortress, is only open to the public if the white and red banner isn't flying overhead (the flag means that Prince Albert is home), but you still can admire the cannons (a gift from Louis XIV) and witness the daily changing of the guard at 11:55 a.m. Don't miss the summertime-only guided tours of the throne room and state apartments, and the classical concerts in the peaceful palace courtyard. Skip the touristy shops but do wander through the Rock's lush exotic gardens. There's also a grandiose Romanesque-meets-Byzantine marble cathedral housing the tombs of the former princes of Monaco, and the kid-friendly Oceanography Museum, with an impressive collection of bizarre marine creatures, whale skeletons and a huge tank of circling sharks.

Another family-friendly option is the Monte-Carlo Bay Resort, with a more relaxed vibe. Take advantage of the fixed-price $46 weekday lunches at its exotic Blue Bay restaurant, where Michelin-star chef Marcel Ravin offers exquisitely prepared creative combos of Mediterranean classic and exotic flavours.

But for the adults only, there's Jimmy'z, a veritable institution. The disco is in the Sporting Club in Larvotto, a strip of sandy beaches, boutiques and restaurants. Forget affordability: Expect exorbitant prices and a mix of Middle Eastern royalty, Russian sylphs, rock and sports stars, and local bejewelled shopkeepers.

For a sunset cocktail well worth the splurge, though, visit the posh Beach Club – with its old-fashioned striped tent cabanas and a huge seawater pool – at the 40-room Monte-Carlo Beach at the easternmost end of Larvotto. A glamorous seaside landmark since the 1920s, the hotel reopened this May after a complete makeover designed by rising star India Mahdavi.

Just up the hill, and around the bend, is the swanky Monte-Carlo Country Club, where world champions compete on the immaculate clay courts. But keep walking down the dirt road to the beginning of the coastal customs footpath – no need to splash out for an expensive lunch, when you'll find the same fresh-grilled fish at half the price at La Différance, a friendly, family-run snack shack perched on the cliffs, where all the local professionals go for authentic Provençal cuisine.

You're suddenly miles away from the other Monaco – the famed millionaire's paradise of designer boutiques, high-rises, spotlessly clean streets loaded with hidden sophisticated surveillance cameras and polite white-gloved gendarmes. Here above the shimmering Mediterranean, it's clear why Cro-Magnons settled here in the Stone Age (their skeletons are on exhibit the nearby Grimaldi Caves, over the border in Italy). Monaco rocks.

Special to The Globe and Mail

Monaco is a featured destination on The Globe's Mediterranean Odyssey cruise this August. See globeandmail.com/cruise.