It is the district headquarters of Kangra district of himanchal pradesh.

On 19 January 2017, Chief Minister Virbhadra Singh declared Dharamshala as the second capital of Himachal Pradesh state, making Himachal Pradesh the third state of India with two capitals after Jammu and Kashmir and Maharashtra.

Dharamshala also has beautiful tea gardens and its tea, known as Dharamsala or Kangra tea, is very popular across India and the rest of the world.

Dharamshala is a starting point to a number of trekking trails that especially includes lead trekkers across Dhauladhar into the upper Ravi Valley and Chamba district. In route, trekkers cross through forests of deodar, pine, oak and rhododendron, and pass streams and rivers and wind along vertiginous cliff tracks, and the occasional lake waterfall and glacier.