The state derives its name from the principal town, which was in the region of the Rajas, the seat of the darbars. It is now the headquarters of the State Administration.
Then from where it is called as Chamba? Or then why the town came to be called Chamba? There
is a popular tradition behind it.
The town was named by the Raja Sahil Varman, who was the founder of Chamba town. He had a daughter named Champavati. His daughter Champavati liked this place, due to its natural beauty and fascinating scenery. Raja Sahil Varman fulfilled the wish of his daughter and the site of the town was selected by the Raja.
It is believed that the original name of the town Champa has been taken from Champavati, with the passage of time it may have got corrupted to Chamba.
There was also a temple constructed in her memory, known as Champavati temple more popularly as the Chamesni Temple.
The most plausible alternative suggestion as to the naming of the place is that the name was derived from the “Champa” trees (Champak; Champaka; Michelia Champaka.) which bear highly fragrant blossoms and which grew and still stand in a neighborhood as well as in the town itself.
This version of the origin of the name finds support from certain inscriptions (mentioned at P.10 of Antiquities of Chamba State by Dr. Vogel) in which the name of the town is spelt as “Champaka”.