The Valley with its varied and abundant water resources is very suited for the sport of angling. Numerous rivers and streams and man-made reservoirs spanning a wide topographical spectrum allow sports persons a year-round indulgence amidst very scenic surroundings. Mahseer and Trouts are most favoured for sports. Mahseer can be fished at Neugal, Binwa, Baner khads, River Beas and on the lake of Pong Dam (now named Maharana Pratap Sagar, that spreads over 91 Sq.miles). Trouts are found at Barot.

Palampur provides an excellent year-round trekking opportunities. It serves as an appropriate base for trans-Dhauladhar routes exiting into Chamba, Manali or Lahaul Valley. Soft, medium or hard options of same-day to two-week duration are possible, depending on season.
Some notable routes are: (Summer / monsoon / autumn)
Over the Sunghar or Waru Pass to Holi / Nayagraon and then over Sukdali Pass to Mani Mahesh and Bharmour.
Over the Thamsar Jot to Bara Bhangal and then over the Kali Hin or Manali Passes to Manali, or along the Ravi river to Nayagraon and over the Waru Pass to Palampur.
Over the Jalsu Pass to Nayagraon and Chamba.
Over the Chenna Pass to Chota Bhangal and then to Kullu Valley.

A snow fed beautiful Neugal river flows at one side of the town(abt 3 km.) There is the awe inspiring Bundla Chasm which falls over the 100 mtrs to the bundla stream in the neugal river. It is roaring in the monsoon season and is very thrilling and a real feast to the eyes. A park dedicated & developed to first martyr of the Kargil war, Amar saheed, SAURAV KALIA runs along the Neugal river is a rare & natural picnic spot.

Three are numerous Pine forests and meadows around Palampur where one can enjoy lovely walks.

Palampur has undoubtedly among the most beautiful Tea gardens in the country. The flavour rich Kangra tea is the produce of these tea gardens. The tea factory is just a km from the Hotel where one can witness the processing of tea. The leisurely walks through shaded, eternally trimmed, lush dark green Tea Gardens is a very refreshing experience.