Pahalgam is also associated with the annual Amarnath Yatra. Chandanwari (2,895 m), 16 km from Pahalgam, is the starting point of the yatra that takes place every year in the month of Sawan (July to August). The road from Pahalgam to Chandanwari is on fairly flat terrain and can be undertaken by car. From Chandanwari onwards the track becomes much steeper, and is accessible on foot or by pony. About 11 km from Chandanwari is the mountain lake of Sheshnag (3,574 m), after which, 13 km away is the last stop, Panchtarni. The Amarnath cave is 6 km from there. During the month of Sawan, an ice stalagmite forms a natural Shivling in the Amarnath cave.

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