Prashar Lake is located in the picturesque village of Prashar at a distance of 62 km from Mandi. Perched at an altitude of 2730 m above sea level, there is a three storied temple located on the banks of the lake. Dedicated to the popular Sage Prashar, this temple is constructed on the spot where he used to mediate. Surrounded by beautiful snow-clad mountains, the water of this lake is deep blue in colour. However, the depth of this lake has still not been determined. Travellers can also see a tiny island in the lake.