Dagshaiis a cantonment area situated around 13kms from Kasauli. Dagshaiis said to be built by Britishers as a sanatorium for TB patients who came here for treatment and rest. It is located at a height of 1734 metres. Dagshai is famous for its picnic spots and views, on a clear day one can easily see the cities of Panchkula and Chandigarh from here. Dagshai also boasts of an Army school which is considered as a very good boarding school and many other military schools. The nearest railway station is Kumar Hatti situated at a distance of 3kms from Dagshai.