It's the capital of Michoacan state, and also famous for its annual cinema festival.
My suggestion:
If you are thinking about going there during the "festival of the dead" make sure you reserve your hotel in advance, or you will find yourself in either somewhere incredibly expensive, or somewhere incredibly unpleasant!
My review
Morelia is a charming town with an atmosphere that is somewhere between a student town and that of the cultural centre of the state. As a result
, I felt at home there, and wanted to spend a lot of time wandering along the narrow streets and sitting on the cafe terraces. The historic, colonial centre is really cute, but the town's star attraction is the cathedral's magnificent dome. The town's "dulces" (or sweets) are also famous. If you love really, really sweet things, you'll love them!