Palampur, at a height of 1219 mts., is a main spot in the beautiful valley surrounded by tea gardens and pine trees. The place enjoys a healthy climate and the pine scented air is said to have curative properties. The scenery presents a sublime and beautiful contrast- the plain presents a picture of rural loveliness and repose, while the hills are majestic. Behind this town stands high ranges of Dhauladhar mountains, whose tops remain covered for most part of the year. This place is being developed as large tourist centre. A ropeway and an amusement park is also on the  to be established here. An Agricultural University is already functioning and some tea factories are also coming up.

There are also some pleasant walks around the town. A short walk from here takes one to the awe inspiring Bundla chasm which falls over a 100mts. to the Bundla stream. The stream is a thin streak running over stony ground far below the cliff. During the monsoon seasons, it swells and rages - madly over the entire width of the chasm taking stones and boulders along with it and makes loud roaring noise like thunder.