While primarily a mountain city, Dharamshala is home to several serene water features.
* **Bhagsunag Waterfall:** A picturesque, rocky cascade located near the Bhagsunag Temple. It is accessible via a short, popular hike and is particularly majestic during the monsoon. * **Dal Lake:** Not to be confused with the massive lake in Kashmir, Dharamshala's Dal Lake is a small, mid-altitude lake surrounded by dense deodar trees. It is considered sacred and hosts an annual local fair. * **Mountain Streams:** Numerous unnamed glacial streams and rivulets flow down from the Dhauladhars, eventually feeding into the Beas River basin.