A picturesque hill town off the tourist map, Dagshai, lying at a height of 1,734 m invites tourists for its old-world charm. One of the oldest cantonment towns in Solan, it provides sweeping and breathtaking views of Chandigarh and Punchkula at night. During the day, visitors can see the Parwanoo Timber Trail from here.

Dagshai was founded by the East India Company in 1847 by taking five villages free from Maharaja Bhupinder Singh of Patiala. The town was primarily built to house tuberculosis patients and has a British graveyard that overlooks the valley.

According to local legends, the name Dagshai came from 'daag-e-shahi' meaning royal mark. It is said that during the Mughal rule, a royal mark was put on the forehead of criminals before they were sent here.

Another attraction is the Dagshai Central Jail, built in 1849, that has been converted into a museum. The jail came into limelight during the period when Irish freedom fighters were executed here. Situated around 10 km from Solan, Dagshai, locals claim, is a haunted town but there are no proofs for the same. The cemetery at Dagshai is said to be from the times of British rule. Locals say a Britisher, Major George Weston, who was a medical practitioner lived here with his nursing assistant wife. A wandering saint blessed them with an amulet as the couple remained childless after years of marriage. And soon, the wife, Mary conceived but her happiness was short-lived as she died during the eighth month of her pregnancy in 1909. George got a beautiful grave built for his wife and their unborn baby. In fact, the marble used to construct the resting place was brought from England. It is said that the ghost of Mary still wanders around her grave.

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