I ate at a nice restaurant near Niagara Falls. It's called Lighthouse and it's located on Niagara Parkway between Niagara Falls and Fort Erie. It's a 5 minute drive from the Falls and well worth it.
The restaurant is located in a 200 year old building renovated by the owner, Mr. Young. It features indoor and outdoor dining and there is also a party room on the second floor. Entrees range from Italian to Asian to your basic steak sandwich. My father-in-law ate the steak sandwich and exclaimed that this was the steak sandwich he'd been searching for his whole life. I ate the stir fry with Udon noodles and it was delicious. My wife wasn't going to try anything else on the menu but I convinced her that she should at least try one other thing, and she wasn't disappointed. She ate the seafood linguini and thought it was delightful.
The house speciality, however, isn't found on the menu. They're not always available, but if they are, you'd better not miss the spring rolls. These amazing spring rolls are thick and loaded with pork or shrimp, and they have a nice crispy shell. They are truly incredible.
The Lighthouse is open until 9:30 (kitchen closes at 9) and is found at 4301 Niagara Parkway, Fort Erie.