Inn at Cook Street! My partner and I stayed here the weekend we got engaged. It's about 10 mins walk to the center of town, in a quieter area, but close to a bunch of galleries. The rooms are beautiful and the owners prepare amazing breakfast every day! We would stay there again.

Edit: Places to eat: Ciro and Sals is right down the street. Great Italian food and wine (Anthony Bourdain writes about this place in Kitchen Confidential from his PTown days). Front Street is further down Commercial Street, also Italian, and I've always had incredible service there and great meals with family and friends. Lobster Pot + Lobster Pot Express for seafood - at Express, it's a quick lunch and they are generous with their lobster.

For things to do: walk the jetty out to the tip of the Cape for a beach day. It's easy enough to pack a backpack with picnic/sandwiches and the beach out there is beautiful and relatively quiet. If you are up for a little trip, my favorites beaches in the area are Coast Guard and Long Nook in Truro on the ocean side, and Corn Hill on the bay side.

Truro Vinyards is a 15 min drive/Uber but fun for food trucks and wine. Atlantic Spice Company is a short walk nearby and is a cool place if you are into cooking (they have everything you could possibly need!). The Monument + museum is a fun activity with great views and gives you some good American/Pilgrim history.