Dharan lies right at the foot of hills, but the transformation when coming from Terai is dramatic. It is a hill town with hill people. Dharan is also the gateway to such towns in eastern hills as Dhankuta which are being developed as regional center for the whole area. Until 1989 there used to be a British Grukha Camp in Dharan which was used to recruit Gurkha soldiers from the eastern hills. Rais and Limbus from eastern Nepal used to constitute the major portion of Gurkha soldiers. Dharan is now a bustling bazaar town that has grown rapidly. Temples of Dhantakali, Buda Subba and Singha Bahini in Dharan are unique and famous.
This hill town is linked by a metalled road with the East-West Highway of Nepal. It takes two hours in bus to reach to Dharan from Biratnagar.
There are a number of Standard hotels and lodges in Dharan