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Shangrila was established in 1983 with the opening of the first Resort Hotel in Skardu, Baltistan. It was named shangrila (chinese word) which means "heaven on earth" because of its spectacular beauty,and breathtaking view and peaceful atmosphere. Shangrila Resort Hotel was founded by the late Brig.(Retd) Muhammad Aslam Khan, the first commander of the Northern Scouts who liberated the northern areas in 1948

Shangrila Lake or Lower Kachura Lake is a part of the Shangrila resort. It is about 20 minutes from Skardu (nearly 2,500 m or 8,200 feet) town.

It is a popular tourist destination, and has a unique restaurant that is built on the fuselage of an aircraft that had crushed.