The Rewalsar Lake is the heart of the town and makes the town famous and is the primary attraction of Rewalsar. The lake is located at an elevation of about 1,360 m above sea level. It is a sacred spot for the Hindus, Sikhs and Buddhists.
The lake has seven floating islands of stalk and the locals believe that they can be shaken by prayers or by breeze. It is believed that the spirit of the great Buddhist Saint Padmasambhava resides in them. There is a 123 feet (37.5 m) high statue of Padmasambhava in the middle of the Rewalsar Lake.
The rectangular shaped lakeis 6.5 meters deep and is oligotrophic in nature. The high hills, woods and religious shrines around the lake make it a nature's masterpiece and a serene location suited to unwind any stress.