According to the 2011 Census of India, the Dalhousie Municipal Council had a population of 7,065, while the adjacent Dalhousie Cantonment area added roughly 3,549 residents, bringing the greater urban footprint to just over 10,600. Population growth is intentionally slow, constrained by geographic limits and strict environmental building codes.
The demographic makeup is predominantly Hindu, followed by a significant Tibetan Buddhist community, as well as small populations of Sikhs and Christians. The gender ratio in the town slightly skews male, a common trend in hill stations due to the presence of migrant workers in the hospitality sector and military personnel in the cantonment.
Literacy in Dalhousie is remarkably high, exceeding 91%, which is above both the state and national averages. The primary languages spoken are Hindi, Himachali (various Pahari dialects), and English, with Tibetan commonly spoken within the refugee communities.
