Dharmsala is best known for being the temporary home of exiled Tibetan leader the Dalai Lama. During the time of British rule, it was a popular hill station. The town is divided into two different parts. At an altitude of 1250 m, close to the snow line, sits the lower town, which is often referred to as the Civil & Depot Bazaar and some 500 meter higher is upper town, or McLeod Ganj.

The town has been heavily influenced by Tibetan culture. It has a Tibetan monastery, as well as a school of Tibetan studies. Meditation and Buddhism courses are given in town and the surrounding area is excellent for hiking. Weeklong treks can be arranged in Dharmsala from April to December.

McLeod Ganj is where most hotels and restaurants are, most of them in Tibetan style. Dharmsala is in northeastern Himachal Pradesh, built along a spur of the Dhauladhar Range, some 395 km north of Delhi.