The ornate entrance to the Souk is shown below. If you're walking down the corniche, you can't miss it. Also, all taxi drivers know exactly where it is.
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The souk itself consists of a warren of covered indoor streets, with stalls at either side, as you can see in the next two photographs.
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There are stalls on the outside of the souk buildings, and in the background you can see one of the many old Portuguese forts in the area, and on the left a mosque:
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Haggling in the souk is expected, and you can expect to take at least 30% off the offered price but still have the feeling that you may have overpaid. Still, it's a great experience and definitely one of the highpoint of any trip to Oman.
If you want to see more of Mutrah Souk, and Oman in general, then I highly recommend Ahmed Al-Shukaili's photographs.
Other posts about Muscat:
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