Famous Lakes in Mandi
Prashar Lake
This beautiful lake is situated at an altitude of 2730 meters above mean sea level and is around 35 km. from the Mandi town.
This lake is situated in a cup like valley. A temple of great scenic beauty is also here. With deep blue waters, this beautiful lake is held sacred to the sage Prashar (rishi). A three-tiered Pagoda-like temple dedicated to the sage lies by the lake - and he is regarded to have meditated here. No other temple in the Western Himalayas can rival the grandeur of the settings of Prashar Rishi. A fair is held here in the in the month of June every year, where people gather from all neighbouring villages. This lake is fed by small mountain streams.
Rewalsar Lake
This lake is situated at an altitude of 1360 meters above mean sea level and is 24 km. from Mandi town. The lake is also associated with Nag cult or serpent worshipping. The lake water is believed to be flowing underground from Rewalsar to 'Nagchala' ( a place 10 km from Mandi on the Mandi-Shimla National Highway. The Hindus believe that it was here that the 'Lomas Rishi' held his penance in devotion to lord Shiva. Overwhelmed, Shiva gave the rishi, the seven floating islands in reward. This is a very sacred place.
Shaped quite like a square and with a shoreline of 735 meters. It is an important pilgrimage. This lake is known for its floating island. There is a story behind the formation of this lake. The legend goes that princess Mandarva, the daughter of king 'Arshadhara' of Zahor ( tibetian name of Mandi ) resolved to announce her loyal ties and dedicated herself to the religious order. The king agreed and she took her bows before a Buddhist scholar named 'Shantarakshita' ( believed to be the brother of Padmasambhava. Padmasambhava having observed that she was a dedicated pupil, came through the air from 'Uddiyana' and appeared in person to give her teachings. 
A cowherd who saw all this spread the words that he had seen the princes with Charlatan. The news aroused King's wrath. He thought that his daughter has broken the vow by flirting with a man. On King's order, the princess was put in a deephole in the earth full of thorns and Padmasambhava was taken out to a secluded place, tied to a wooden pyre which was then set on fire. When the smoke did not clearoff for a week, the King visited the spot and found to his surprise that the place had turned into a Lake with Lotus in the centre. Padmasambhava had menifested himself. Repenting king offered him his kingdom and princess Mandarva was married to him. Rewalsar is known as 'Padmacan' to the Buddhist which means 'Lotus Possessing' and is considered the place, where the spirit of Padmasambhava rests.
Sukhsar Lake
Another beautiful lake on the hiltop of Rewalsar town is Sukhsar lake which is surrounded by rising hills and thick bushy vegetation in the catchment area. There is a snowfall in the winter here.
Kalasar Lake
It is situated at the top of Rewalsar town and is surrounded by beautiful green hills. This lake sometimes experiences snowfall during winter.
Kunt Bhayog Lake
Situated at the beautiful hiltop of Rewalsar town and it is enclosed by hills from two sides. This lake is about 12 to 15 m deep at the centre
Kamru Nag Lake
Resting resort for trekkers at a height of 3,334 metres above sea level on Mandi - Karsog road.