Panchpula, meaning five bridges, is a noted tourist spot situated at a distance of 3 km from Dalhousie. Popular for its gushing streams, Panchpula is the main source of potable water for the nearby localities like Dalhousie and Balloon. This stream originates from the northern side of Dayakund, which later cuts through an abyss and then flows into the different waterbodies located in Panchpula.
A monument named Panchpula, built in memory of Sardar Ajit Singh, a renowned revolutionary leader, has been erected at the meeting point of the streams. On the way to Panchpula falls a beautiful waterfall named Satdhara whose water is believed to bear medicinal properties by locals.