Manali, a name that resonates with divine charm, is named after the Hindu lawgiver, Manu. The name is considered a derivative of 'Manu-Alaya', meaning 'the abode of Manu'. According to Hindu cosmology, after a great flood deluged the world, Manu stepped off his ark in Manali to recreate human life. This sacred connection is why the Kullu Valley, where Manali is nestled, is often revered as the "Valley of the Gods." An ancient temple dedicated to the sage Manu still stands in the old part of the town, drawing pilgrims and curious travelers alike.

Historically, Manali was the beginning of an ancient trade route that connected to Ladakh, the Karakoram Pass, and eventually to Yarkand and Hotan in the Tarim Basin of China. This strategic location has infused the town with a rich cultural tapestry that complements its natural splendor, making it a gateway not just to other regions but to a storied past.