Prashar Lake is situated at a height of 2,730 metres above mean sea level in the Mandi district of Himachal Pradesh. It is located at a distance of forty kilometers from Mandi. The lake is considered sacrosanct because it is believed that sage Prashar meditated here. In the vicinity of the lake there is a three-storied pagoda style temple dedicated to sage Prashar. The Prashar Lake offers fishing and boating facilities and the scintillating view of snow-capped mountains encircling the lake make it an exciting excursion site. The deep blue water of the lake enhances the natural beauty of the land.

Various colourful festivals are celebrated in the villages situated near the lake.