Lauterbrunnen and surroundings

Gimmelwald and Mürren are next door to each other, up above the valley on one side.
Wengen is opposite on the other side of the valley. You have to come back down from Mürren/Gimmelwald to Lauterbrunnen in the valley bottom in order to get up the other side to Wengen (or vice versa).
Grindelwald is in another valley. You need to go back towards Interlaken to the point where the two valleys split, then back up the other valley. The two valleys are 'Y' shaped, Interlaken at the bottom, Lauterbrunnen at the end of the right fork and Grindelwald at the end of the left fork. Alternatively you can go "over the top" from Lauterbrunnen via Wengen and Kleine Scheidegg to Grindelwald. That is a lot more spectacular and recommended.

This "panoramic map" here may help you to make sense of it all: http://www.tgsgblog.com/wp-content/uploads/2014/09/IMG_9009.jpg
Railways are red, cable cars are black.
The places you listed are worth visiting not for themselves, but for the views, and the train rides or hikes between them. It is definitely a "3D" location, and very spectacular. ENJOY.

You can see all 3 places thoroughly in one day if you get good weather. The towns themselves aren't the main attraction, instead it's the scenery around them and the hiking opportunities springing from them.

If you're into photography you should definitely make a point to photograph each place in a variety of conditions: dawn, sunset, bright sun, a mix of clouds, etc.

You might consider exploring the Mürren / Gimmelwald side of the valley one day and the Wengen / Grindelwald side the next day. Plan a full day for each segment, especially if you plan to visit the Schilthorn or Jungfraujoch. Do a bit of exploring in the Lauterbrunnen area on the afternoon of your arrival day. Three nights only allows two full days of touring, so that's all you'll have time for.

Thank you all for your advise. So I am definitely going todo Gimmelwald/Murren in one day. Take cable car to Gimmelwald and cable car to Murren and then hike down to Gimmelwald.

For my second day for Grindelwald-Wengen, What do you think are best options to travel? One obvious choice is to travel by train from Lauterbrunnen to Grindelwald and then come back to Lauterbrunnen by Train and then take train to Wengen. Or is there any alternate path where I can do Wengen-Grindelwald without coming back to Lauterbrunnen?

Thank you.

When visiting Grindelwald, you don't have to come back to Lauterbrunnen each time as there's a separate rail line from Grindelwald to Kleine Scheidegg. If my memory is correct, one possibility would be to do a "loop", first from Lauterbrunnen to Grindelwald via Zweilütschinen (that will be on the Berner Oberlandbahn). From Grindelwald you can travel to Kleine Scheidegg via the Wengernalpbahn. Once you're finished looking around Kleine Scheidegg (or taking the trip to the Jungfraujoch), travel back to Lauterbrunnen via Wengen (again via the Wengernalpbahn).

With typical Swiss efficiency, it's all very well organized.

Just my opinion, but...

As pleasant as these towns may be, they're not the attraction. They're merely bases to sleep and eat, while allowing easy access to the mountains. Gimmelwald would be on nobody's radar had Rick Steves not gushed over it in his book. Although I think Grindelwald is the best choice for skiing in the winter, there's really no reason to visit it in the summer unless you want to hike on that side of the moutains. If you ascend to the Jungfraujoch from Lauterbrunnen, you'll pass through Wengen anyway, so you may as well give it a look. Mürren is a good base for hiking up the Schilthorn.

Take cable car to Gimmelwald and cable car to Murren and then hike down to Gimmelwald.

Alternatively, you can make a loop:

• Cableway to Grutschalp then the little train along the cliff to Muerren (we often walk instead of taking the train, a nice 90-minute hike)

• Take a hike or go to the Schilthorn or both from Muerren. Also a great lunch stop.

• Walk down to Ginmmelwald after experiencing Muerren (20 minutes)

• Take the cableway down to the valley and the bus back to Lauterbrunnen

I recommend buying a Berner Oberland Regional Pass, which will cover all of these lifts and trains.

Gimmelwald is small and cute, but I wouldn't waste a day if you only have 3 days.

We stayed in Gimmelwald twice for over a week. It is about two streets long. Murren is above Gimmelwald and has shops, restaurants, lots of hotels, etc (although still very small). As others have said, it isn't the location that makes it special, it is the views.

I would add that you may, in fact, want to go above Murren. When we have hiked we took the gondola to Murren and then Allmendhubel funicular up further. I've done the hike from Murren down to Gimmelwald (we walked up to the grocery store) but it isn't as spectacular as going up higher and then hiking down. If you did just that you would be missing a grander view and longer hike.

When you get to Murren, take some time to walk it and see the shops etc. then go up higher before you start hiking, or better, maybe hike first and then have drinks and dinner in Murren when you are done. Then you could hike down to Gimmelwald from there before catching the gondola down. If you are too tired you could take the gondola down from Murren (quick stop in Gimmelwald just to see it, then continue down to the valley). During our hike we stopped at a farm and got a Swiss milkshake along the way (just a warning- it was more milk than shake!)

If you hike down to Gimmelwald, then walk the town just so you've seen what it is, but it isn't worth more than that. We prefer to stay there because it is so tiny and it feels more like a local. But, really not much to see in the way of a village but maybe a photo op of small houses etc.

It is spectacular!! It is gorgeous in Lauterbrunnen, then as you go up it gets better and better! There are many, many hikes available that are clearly marked with estimated times for the hike, so choose what you have time for. I think the older Swiss people time the hikes, and it took us way more time than them! I could hardly walk forward it was so beautiful!

Have a grand time!!

you will want to stay longer.
A day trip up the Jungfrau is a must Jungfrau web cam which you can do from Lauterbrunnen, start at 7am to avoid the crowds, you can walk around at Kleine Scheidegg and Wengen...both so beautiful with classic views. Check the weather forecast and do this on a fine day. The next day you can do Gimmelwald, Murren with the walks suggested above.
Of course you need to also walk the valley floor through Lauterbrunnen and visit the infamous Staubbach Falls and also the Trummelbach falls inside the mountain Trummelbach- another day :)