Standing in a peaceful valley roughly 25 kilometers south of valley the small beautiful town of Panauti is at a junction of the 2 rivers. This town is relatively untouched but where festivals preserving the precious tradition of the indigenous, thriving Newari Village. It possesses a number of interesting temples and interesting old houses, besides it is famous for magnificent woodcarvings. Panauti had a royal palace in its principal square. Concerning trek, an interesting walks leads from Dhulikhel to Panauti. The pleasant two hour stroll starts off south from Dhulikhel, then turns west crossing rice-fields and running along the course of a tiny stream. It eventually hits the Banepa – Panauti road a little north of the town.

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