Dagshai is situated in the Solan District and is located a few km. away from Barog. It is one of the oldest cantonment towns and is located on a hillock, which is 5,689 ft high. The name Dagshai was derived from ‘DAGG-E-SHAHI’, which was a mark put on the forehead of criminals during the Mughal era. After being marked with this symbol, the criminals were sent to the then Dagshai village. The attraction also contains a graveyard that overlooks a valley and dates from the British era. Dagshai Central Jail is still present within this village.