Thara Guesthouse is a bit of a walk from the rest of Krabi town, but it's well worth making the effort to seek out. It's the last place stay on Kongkha Rd as you head away from town along the river and is probably the friendliest spot in Krabi, partly because it attracts mostly Thais and western visitors are still rewarded with a warm reception and a good deal of special attention.
There is also a small but pleasant cafe on the ground floor serving very reasonably-priced food.