Accessibility: 29 km southwest of Mandi town

Located about 29-km southwest of Mandi town, is the most sacred site of Buddhism in Himachal Pradesh. The place possesses a pristine beauty characterized by an emerald green lake, and surrounded by thick woods on all sides.

According to a popular legend, the spirit of 'Guru Padmasambhava' dwells on the islands floating in the lake. A majestic pagoda-type monastery looms on the lakeshore, which enshrines a huge stucco image of Padmasambhava. The interior is embellished with murals in mixed Indo-Chinese style.

Legend has it that Rewalsar was the place from where Padmasambhava proceeded to Tibet in the 8th century on the invitation of King 'Sron Btsan Sgampo', to disseminate dharma on the very roof of the world. It was this religion that came to be known as Lamaism.