Naggar is a small ancient town, situated at an altitude of about 1,851 m. It is located on the banks of River Beas, and was founded by Raja Visudhpal and continued as headquarters of the state until the capital was transferred to Sultanpur (Kullu) by Jagat Singh, the ruler of Kullu in 1460 AD. 

The place enjoys a good climate. While summers are pleasant, winters are quite cold. One of the must-see sights in this picturesque town is the Naggar Castle, which is said to have been built by the rulers of Kullu around 1500 AD, before being turned into a courthouse by the British in 1846, and ultimately a hotel in 1976. Exhibits depicting the town's rich culture and history can be found at the International Roerich Memorial Trust and the Urusvati Himalayan Folk Art Museum. The latter was established for the sole purpose of preserving the folk art and craft of the region.

Naggar is easily accessible from Kullu, located 26 km away, and Manali that lies at a distance of 21 km. The nearest airport is at Bhunter, about 36 km away.