The beautiful saucer-shaped blue-water lake lies in the lap of the snow-covered Dhauladhar ranges in Kullu Valley. A peculiar thing about the lake, located at a height of 2730 metres, is a little floating island that keeps moving and changing its position at regular intervals. Similar to most of the mountain lakes, it is also fed by rainwater and glacier. Monsoon is a good time to visit Prashar Lake, surrounded by green pastures and colourful flowers. If you wish to see some snow, visit during winters.

A legend has it that the lake was created by the Pandavas while returning after the battle, Mahabharata. Next to the lake is an old three-storied pagoda shaped temple with beautiful wood carvings and slate roof. Built in the 13th century, this shrine is dedicated to Rishi Prashar.