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Dhulikhel is located at the Eastern rim of Kathmandu Valley, south of the Himalayas at 1550m above sea level and is situated 30 km southeast of Kathmandu and 74 km southwest of Kodari.

For many centuries, Dhulikhel has been an important trading centre on the ancient commercial route linking Nepal to Tibet. Since time immemorial, people of Nepal travel to Tibet to bring home salt and gold. Likewise, the Tibetans every year with their flocks of sheep enter into Nepal during Dashain, the greatest Hindu festival. They purchased chilies and other daily necessities in Nepal and return to their homeland. In those days, a whole day walk from Kathmandu to Dhulikhel was comfortable for Tibet trippers with easily available of food and water at Dhulikhel at the evening for overnight stay. Even now, a bird's eye view from the resorts at Dhulikhel to the landscapes; highway to Tibet and horizons far to the Tibetan borders, clearly exhibits Dhulikhel as the gateway of Tibet. After adjoining with Tibet by motorable road in 1965, Dhulikhel got a face lift and developed as a tourist destination both for Tibet trippers and tourists. Dhulikhel is an ideal station to stop for overnight stay while going to Tibet and coming back to Kathmandu.

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