There are some restaurants, few best ones are Freak, Lounge, Joy, Taj and Golden Dragon. You can also go to Neugal Cafe which is the best sightseeing in Palampur. It is a nice place and has a very beautiful view of Dhauladhar range. Freak is a new cool restaurant, spacious, friendly and very clean, serving a variety of western, Indian and Chinese dishes not far from the bus stand on the main road.