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Dharmasala is a beautiful place. It is cool during the summer, so it is a nice retreat during the hotter months in India. It is surrounded by snow capped mountains and is one of the main town of Kangra Valley. The main tourist attractions are 30 minutes drive up the mountain to the hill station Mcleod Ganj, where His Holiness the 14th Dalai Lama has his residence in exile and holds teachings each year in March and September. The best season to visit this area is between February to June and September to November.
Interesting places to visit around Dharamsala include St. John's Church in the Wilderness (2km outside of Dharamsala), and Bhagsunag Temple.