Khajjiar is famous for the popular Khajji Naga shrine dedicated to the serpent god from which the name is believed to have been derived. The temple dates back to the 10th century and is interspaced with different patterns and images on the ceiling and wooden posts. A curious blend of Hindu and Mughal styles of architecture is reflected in the wooden carvings on the ceilings and wooden posts. The image carvings are said to represent the Kauravas who were tied up here in the hideout by the Pandavas. The temple consists of a spacious congregation hall sufficiently enclosed by wooden supports. The dome-shaped shrine is made of slates locally extracted from limestone quarries. Adjoining are other shrines of Shiva and Hadimba goddess also. The age-old tradition of sacrificing a goat is still practiced outside the temple premises.
Khajjiar from Dalhousie, one is tempted to halt at Kalatop, famous for its wildlife sanctuary. Here, one can watch the different species of wildlife amidst their natural habitat. However, it is sad that there is no proper racecourse, which has resulted in soil erosion.
Moreover, Khajjiar has an islet with a small lake surrounding it. The lake is considered to be holy by the locals as the legend associated it with Khajinag, the deity in the Khaaji temple. The lake has been neglected over the years and its waters, which at one time reflected the clear blue skies, today give its resemblance to a shallow pond. However, the Department of Environment has recently taken up the beautification of the lake.