Dal Lake has rightfully become an icon of the Kashmir tourism industry. A Himalayan urban lake, it has five basins and a number of channels that are well linked with each other. There are plenty of fishes in Dal Lake and fishery is the second largest industry of the region centered on the lake. The sparkling quiet waters of Dal surrounded by snow-capped mountains on its three sides, undoubtedly mark it as one of the most beautiful lakes of India. It is also the second largest lake in the State of Jammu and Kashmir with numerous gardens and orchards all along its shores. Houseboats form an indelible part of the scenery of the Dal Lake that are always ready to take tourists to a romantic and peaceful ride of the lake and soothe their nerves as the houseboat floats over the slightly rippling waters. They also offer some of the most exotic views of the splendid scenery of the Dal Lake.

There are Shikaras that look like small ornate versions of the gondolas of Venice that offers ferry rides to and from the banks of the lake to the houseboats. The shores of the Lake houses the distinct Moghul monuments and the campus of the Kashmir University while the two hillocks overlooking the lake house Shankar Acharya and Hari Parbat temples. The glorious Mughal gardens on its shores contribute to the beauty of the Dal Lake. Out of about five hundred gardens laid down in 16th to 17th century, only a few still survive. There have been controversies about the origin of the Dal Lake. While some geologists believe that the origins of Dal Lake lie in the Pleistocene Oligotrophic Lake that once covered the entire valley of Kashmir, others just believe it to be a flood plain lake. The floating gardens of Dal Lake are considered a beauty in themselves. One can find a number of restaurants and hotels at the lakefront that have sprung up, encouraged by the large influx of tourists here.

The shore line of the lake, is about 15.5 kilometers (9.6 mi), is encompassed by a boulevard lined with Mughal era gardens, parks, houseboats and hotels. Scenic views of the lake can be witnessed from the shore line Mughal gardens, such as Shalimar Bagh andNishat Bagh built during the reign of Mughal Emperor Jahangir and from houseboats cruising along the lake in the colorful shikaras. During the winter season, the temperature sometimes reaches −11 °C (12 °F), freezing the lake. The lake covers an area of 18 square kilometers (6.9 sq. mi) and is part of a natural wetland which covers 21.1 square kilometers (8.1 sq. mi), including its floating gardens. The floating gardens, known as "Rad" in Kashmiri, blossom with lotus flowers during July and August. The wetland is divided by causeways into four basins; Gagribal, Lokut Dal, Bod Dal and Nagin (although Nagin is also considered as an independent lake). Lokut-dal and Bod-dal each have an island in the centre, known as Rup Lank (or Char Chinari) and Sona Lank respectively. At present, the Dal Lake and its Mughal gardens, Shalimar Bagh and the Nishat Bagh on its periphery are undergoing intensive restoration measures to fully address the serious eutrophication problems experienced by the lake. Massive investments of approximately US$275 million (₹ 11 billion) are being made by the Government of India to restore the lake to its original splendor.

There are three islands in the lake; three real islands anyway, there are other sorts of islands joined by causeways. Around the lake are many of Srinagar's most interesting sights, in particular the pleasant Mughal gardens. It's also flanked by hills, particularly along its east bank. The Shankaracharya hill provides a very fine view over the lake. The largest group of houseboats lies along the western edge of the lake near the lakeside boulevard, towards Dal gate. They are lined in looping rows and around small islands. Several hotels can also be found on flat islands in the lake. Beyond the houseboats to the northwest are the floating gardens. The waters of Dal Lake are amazingly clear. Nevertheless one is advised not to go swimming in the lake although the swimming houseboats, equipped with diving boards and chutes, are moored in a deeper part of the lake, 'upstream' from the concentration of houseboats. Swimming here can be quite refreshing, especially on a hot afternoon. One will undoubtedly be joined by a number of Indians, including Hindu women who swim in their saris. The Lake is probably at its most beautiful when the lotus flowers bloom in July and August. The floating gardens, known as "Rad" in Kashmiri, are one of the stranger aspects of Dal Lake. They're composed of matted vegetation and earth, which are cut away from the lake bottom and towed to a convenient location where they are moored. Tomatoes, Cucumbers and Melons all grow amazingly well in these gardens, if one look underneath one can see that they do literally float on the lake. One can also approach the floating gardens by road; the boulevard runs along the eastern edge of the lake, providing fine views all the way.

One will often see weeds being pulled up out of the lake - this serves a double purpose. The lake waterways are kept clear and the weeds are rotted until they form excellent compost for the gardens. The shallowness of the lake and its heavy growth of waterweeds is probably the main reason there are so very few powered boats on the water. Dal Lake would be nowhere near as pleasant if there were powerboats rushing back and forth across its tranquil surface. There are many tours around the lake but by far the best way to see it is to take a Shikara for a day and do a circuit of the Mughal gardens. At a reasonable price, there's hardly any other lazier and more pleasurable way of getting into the swing of Srinagar.