Dagshai is one of the oldest cantonment towns in the Solan district of Himachal Pradesh. It is situated on top of 5689 feet (1734-meter) high hillock that stands sphinx-like astride the Kalka-Shimla Highway at a point about 11 km from Solan.
It was founded in 1847 by the East India Company by securing free of cost five villages from the then Maharaja of Patiala. The name of these villages was Dabbi, Badhtiala, Chunawad, Jawag and Dagshai.
The new cantonment was named after the last-named village, as it was the largest and most strategically located.
Today, Dagshai Cantonment Board is categorized as Class III Cantonment and has 12 members giving equal representation to Elected and official members.