While there are no major navigable rivers within the town limits, mountain water features are prominent.
* **Bhagsunag Waterfall**: A cascade of fresh mountain water that drops approximately 20 meters, flowing down through the rocky terrain near the Bhagsunag temple. * **Dal Lake**: Located near the village of Naddi (about 3 km from McLeod Ganj), this is a small, mid-altitude lake surrounded by deodar trees and a temple dedicated to Lord Shiva.
