This is a hill station lying on the spur of the Dhauladhar range about 17 kms north- east of Kangra town. This hill station is wooded with oak and conifer trees and snow capped mountains enfold three sides of the town while the valley stretches in front. The snowline is perhaps more easily accessible at Dharamshala than at any other hill resort and it is possible to make a day's trek to a snow-point after an early morning's start. Dharamshala is also the headquarter of the Kangra district.

In 1905, tragedy struck Dharamshala when an earthquake levelled it completely. After its reconstruction, Dharamshala flourished as a quiet health resort. It is divided into two distinct parts. Lower Dharamshala has civil offices and business establishments with courts. Kotwali bazar and Upper Dharamshala comprise of places with names which bear witness to its history like McLeod Ganj and Forsythe Ganj. Since 1960, when it became a temporary headquarter of His Holiness The Dalai Lama, Dharamshala has risen to international fame as "The Little Lhasa in India". Mcleodganj is 9 km from Dharamshala.

In and around Dharamshala, one can visit the Kangra Art museum at Kotwali bazar, War memorial, Kunal Pathri temple and tea gardens on way to Kunal Pathri. There is also a beautiful Cricket stadium in the city facing mighty Dhauladhar.