In 1850, the spot where Dalhousie stands was a lovely look at the foot of the Dhauladhar Range. Against the back drop of lofty snowcapped peaks, dense oak and pine groves veered the unbroken slopes of five hills. To this idyllic spot came a troubled man Lord James Ramsay, Marquis of Dalhousie and governor general of India. As continuing military campaign in the Punjab & the pressures of governance had ravaged his health, and he came to the hill in quest of once fleeting peace. He did not have to look far, and the place where he found his precious moments of solace and serenity still bears his name.

Dalhousie is a quiet town, with a sense of enchantment. It commands an imposing view, flanked by its mighty ranges to one side, and the gently valley of Chamba on the other. The climate is salubrious, and the setting just right for walks or quiet get away these in forests.

The most picturesque point for tourist is Khajiar just 20 Km. from Dalhousie here there is a small lake in the mid of pine forest and a large meadow for the horses to wander.