Khajjiar sits on a small plateau with a small stream-fed lake in the middle that has been covered over with weeds. The hill station is surrounded by green meadows and dense forests. It is about 6,500 feet (2,000 m) above sea level in the foothills of the Dhauladhar ranges of the Western Himalayas and snowy peaks can be seen in the distance. It is part of the Kalatop Khajjiar Sanctuary.
Khajjiar can be reached from Dalhousie, the nearest major town and hill station, by bus in an hour or so. It has a rare combination of three ecosystems: lake, pasture and forest, all in one place.
On 7 July 1992, Mr. Willy T. Blazer, Vice Counselor and Head of Chancery of Switzerland in India brought Khajjiar on the world tourism map by christening it "Mini Switzerland". He also put a sign board of a yellow Swiss hiking footpath showing Khajjiar's distance from the Swiss capital Berne-6194 km. Khajjiar is among the 160 locations in the world that bear topographical resemblance with Switzerland. The counselor also took from Khajjiar a stone which will form part of a stone collage around the Swiss Parliament to remind the visitors of Khajjiar as a Mini Switzerland of India.