Shah Allah Ditta is an ancient town and a Union Council of Islamabad Capital Authority. The village was named after a dervish during the Mughal era. It is estimated that Shah Allah Ditta was founded around 1350.
There are numerous caves in and around town. Most of the caves are located at the foot of the Margalla Hills in the west of Taxila, to the east of Islamabad, as well as in the central area of Khanpur.
Some of the caves were inhabited by Buddhist monks as early as 500 BC. Not far from the Shah Allah Ditta Caves are a spring, a pond and a garden with banyan trees. The water from the spring was used to irrigate the garden.
The town was named after a saint named Shah Allah Ditta who lived there and who is also entombed there.
Not far from Shah Allah Ditta is the village of Kanthila, where you can see an ancient baoli (stepwell).
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