Around 10 km from Dharamshala is McLeod Ganj which is like a suburb of Dharamshala. McLeod Ganj is was named after Sir Donald Friell McLeod, a Lieutenant Governor of Punjab in British India. It is known as "Little Lhasa" or "Dhasa" because of its large population of Tibetans. The Tibetan government-in-exile is headquartered in McLeod Ganj. It is highly influenced by Tibetan culture. Tourism is an important industry in McLeod Ganj, but many people come here to study Tibetan Buddhism, culture, crafts, etc.
It is also known for Tibetan handicrafts, thangkas, Tibetan carpets, garments and other souvenirs. One of the important Buddhist site, Tsuglagkhang or Tsuglag Khang, the Dalai Lama's temple is located here. Triund Hill, St. John in the Wilderness, Dal Lake, Bhagsu Nath are some of the interesting places in and around Mcleod Ganj.