Kaghan is the town which gives the name to the valley. It is a permanent settlement and is located at a distance of 61 km from Balakot. Kaghan has a hospital, post office, police station and a small bazaar where items of daily use are available in the shops. There is couple of good hotels and quite a few budget hotels and restaurants which provide accommodation and meals to the visitors who are passing by on their way to Naran. Especially, during early tourist season, when reaching Naran on normal vehicles is not possible, visitors leave their cars in Kaghan and hire jeeps form there for onward journey. Local hotels offer parking facility to tourists in those days.