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Dagshai Cantonment is situated on Kalka-Shimla Highway (National Highway- 22) at the average of 6078 feet. Dagshai Cantonment was founded in 1847 by securing five villages free of cost from Maharaja of Patiala, There is no authenticated record available regarding the origin of its name. According to one legend the name was derived from the Urdu phrase “DAAG-E-SHAHI” which connotes the Royal brand/stamp. The prisoners were branded during the Moghul times and then sent to Dagshai villages. In 1849 a jail was constructed known as Central Jail.
The Cantonment Board runs one English Medium Primary School, Dagshai known as Little Angel Primary School. The said school was started in the year 2012 with the strength of 29, which has been increased to 101 in the year 2015-16. The ratio of girls and boys in the school is 1.46: 1. The Cantonment Board provides free education to children in Cantt Board school. The Board also provides free books and uniforms to school children. Separate toilet facilities for girls and boys has been provided in the school and water purifier has also been installed in the school campus. Computer education is also being given to the school children. As regard to implementation of mid day meal scheme State Authorities is being approached. The Cantonment Board Dagshai & Kasauli has also running a school for special children since May, 2015 with the collaboration of Dagshai Public School, Dagshai.
Board maintains one dispensary. Health facilities are being provided to Cantt. residents such as ECG, Lab tests and ambulance etc. The service of eye specialist and dental doctor are also being provided on visit basis in the Cantt. Board Dispensary. Periodic health checkup facility are being provided to senior citizens, Cantt. Board employees and school children. Besides above Board maintains one Drug De- Addiction Centre with the help of one Psychiatrist and counsellor on visit basis, wherein only outdoor patients involved in drug abuse are being treated and provided with medicines.
The health cards and health diaries have been distributed to the Senior Citizens, school children and Cantt. Board staff.