You can reach Palampur by bus or by train until Maranda. The town is well connected by bus routes to neighbouring states. A narrow gauge train is also available and it is a fun travel from Pathankot to Maranda (1 km from main town). Currently (Oct 2014) this train is not running up to Palampur because of a breach. However you can check at the enquiry counter at Pathankot when you come. Palampur is 3 km from Maranda.
You can also take a taxi from Pathankot (Rs 2000, sedan, Oct 2014).
There is an excellent bus service available from major cities like Delhi (510 km) and Chandigarh (250 km). Himachal Roadways also runs a daily air-conditioned bus service from Delhi to Palampur. HRTC is the best bus to travel from Delhi to Palampur or Vice-versa.
The nearest broad gauge rail-head is Pathankot(112 km) from where a narrow gauge toy train runs. It is a wonderful experience for those who have ample time (it takes around 7 hrs. from Pathankot to Palampur(Maranda)). Chakki Bank is a station just outside Pathankot that handles a lot of long distance trains arriving from the south and east, as well as Jammu. From here it is possible to take an Auto to Pathankot bus station, and then complete a beautiful 4 hour ride to Palampur on a HRTC bus.
Kingfisher Red and MDLR airlines  are running daily flights from Delhi to Kangra Airport (Dharamsala) which is just 40 km from Palampur. Kingfisher uses a fairly sizeable plane and the baggage limit is 25kg. Flights are prone to climatic conditions and at foggy times of year can be cancelled - plan your trip accordingly. As of April 2012 , there is no airlines flying to Kangra (Dharamsala) Airport
Taxis can be hired from travel agencies outside Pathankot station.
As Palampur is a small place, most of the sightseeing can be done on foot. You can hire a car for Rs 700 (oct 2014) to see places within the city.
The whole town is plush with scenic beauty and tea gardens.
This is a 300 metre wide channel located about 2 km outside Palampur. There is an old suspension bridge across the channel, from where you can get an excellent view of the Dhauladhars. There is a small cafe next to the parking lot where you can get tea and cookies.
This is a beautiful garden located next to the Neugal Khad which is situated just outside the city. It has numerous walks, a pond with boating, lots of medicinal plants and a serene atmosphere. A small restaurant serves basic snacks and lunch.
Buy the local Kangra tea from tea shops which are present at various locations around the town. This is the same tea which is is called 'Green Tea' in cities. Find a nearby factory outlet and walk down to the factory itself which is near the new bus station. It smells very nice and has a very good flavour. You can also buy Bamboo pickle from there.
There are some restaurants, few best ones are Pizzian Hut, Freak, Lounge, Joy, Taj and Golden Dragon. Pizzian Hut has an organic farm where they source their food from. They run short courses on organic farming (+919625955542). Love their dark chocolate pastry - yummy. 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).
Dharamshala is another beautiful town about 36 km from Palampur. It is the home of the Dalai Lama and of many Tibetan refugees. The upper part of town where most Tibetans live is called McLeodGanj.
Andretta is about 14 km from Palampur. It is the home of an exceptional artist: Mr. Shobha Singh. His famous work is preserved in an equally beautiful art gallery in this town. It is a place worth visiting for any art-loving person, but is extremely difficult.
Bir is about 25 km from Palampur and is famous for paragliding and hangliding activities. Paragliding lovers from across the world come here for their sport and to participate in the Paragliding World Cup.