Dalhousie's history is deeply intertwined with the British Raj. The area originally belonged to the Raja of Chamba, part of the indigenous Rajput kingdoms of the region. In 1854, the British East India Company, seeking a cool, healthy climate for a sanatorium to recuperate their troops, acquired the territory from the Chamba rulers in exchange for a reduction in annual tribute.
The town was named after Lord Dalhousie, the British Governor-General of India at the time. Over the next few decades, it was developed with sanatoriums, churches, and sprawling bungalows, becoming a favored summer retreat for British civil and military officials. Notable historic moments include the visit of Rabindranath Tagore in 1873, and freedom fighter Subhash Chandra Bose in 1937, who spent several months recovering his health at the freshwater springs now known as Subhash Baoli.
Following Indian independence in 1947, Dalhousie became part of the modern state of Himachal Pradesh. In 1959, the town took on a new cultural dimension when it welcomed thousands of Tibetan refugees fleeing the Chinese occupation of Tibet. The Dalai Lama visited the town to support the newly settled community, establishing a lasting Tibetan presence that continues to influence the town's culture and commerce today.
