It is situated in a cup-like basin and is surrounded by verdant mountains on all sides. These offer a fantastic view of the snowy Pir Panjal range at a distance. The pretty lake has a floating reed island.

The vicinity of the Prashar Lake is considered sacred by the Hindus as the revered Prashar Muni (saint) is supposed to have meditated on it's banks. There’s a quaint 3-tiered pagoda-like temple here dedicated to the Vedic sage. It is a very old temple, said to have been built by Raja Ban Sen of Mandi in the 14th century. Capped with a roof of slate tiles, the temple has a wealth of stone carvings.